Magic Eden and several executives face a class action lawsuit, accused of misleading ME token promotion causing investor losses.

Foresight News reports that on June 16, the United States District Court for the Eastern District of New York accepted a class action lawsuit against Magic Eden. Plaintiffs Jaime Pagan, Ariel Ruano, and Chris Sadowski accuse Magic Eden and its executives of making false statements while promoting the ME token, advertising it as an “ever-growing pillar of the online asset marketplace,” but failing to deliver on those promises and causing investors significant financial losses. Defendants include Magic Eden co-founders Jack Lu, Zhuoxun Yin, Sidney Zhang, Zhuojie Zhou, Euclid Labs Inc. (the operating entity of Magic Eden), the ME Foundation, and others. The case has been officially filed.