Cases & Investigations
Eden Gallery / Meta Eagle Club NFT Litigation

Wolf Popper is co-counsel to over 40 plaintiffs who purchased Meta Eagle Club Non-Fungible Tokens (“NFTs”) in a litigation against defendants Eden Gallery Group Ltd, Cathia Klimovsky, Guy Martinovsky, Gal Yosef, and Cetra Art Corporation.
 
The defendants marketed a private, members-only club in the metaverse based on the digital art made by artist Gal Yosef called the “Meta Eagle Club.” To become a member in the Meta Eagle Club, Plaintiffs and other investors like them had to use the cryptocurrency Ether, the native cryptocurrency of the blockchain platform Ethereum, to purchase NFTs. These Meta Eagle Club NFTs were digital images created by Yosef, showing anthropomorphized eagles in various outfits and costumes. The defendants sold 12,000 Meta Eagle Club NFTS in February 2022 and collectively raised in Ether the equivalent of over $13 million (the “Offering”).
 
The complaint alleges that the defendants made many promotional statements encouraging people to buy these NFTs. The defendants promised the Meta Eagle Club it would be great—members could enjoy trips, giveaways, and parties at Eden Galleries’ locations across the world, and that the defendants would keep making more and more art to populate an online world called the “Galyverse.” As a result, members’ investments in the club would increase and they would receive dividend-like digital assets as long as they were members. Through social media posts, Discord and website announcements, and interview statements made in connection with and after the Offering, the defendants touted the development, longevity, and long-term ecosystem of the Galyverse, as well as benefits related to helping fund the Galyverse by purchasing Meta Eagle Club NFTs, the development of the exclusive Meta Eagle Club metaverse, and the development of a cryptocurrency token called $WING. Moreover, the defendants continually made statements to foster a sense of community around the Meta Eagle Club and assurances that the team would be invested in the project for the long term and keep their outlined promises.
 
However, as alleged in the Complaint, the defendants never did anything substantial to actually build the Meta Eagle Club in any real way. In Internet slang, the project was a “rug pull”—the defendants raised roughly $13 million from investors and did nothing in return, pulling the rug out from under the plaintiffs and other investors. The defendants’ statements were untrue or misleading statements of material fact, and omitted to state material information to make the statements not misleading. In truth, at the time of the Offering, the defendants had no intention of developing the Galyverse into a sustainable ecosystem that would allow them to fulfill their promised benefits, had no intention of developing the custom Meta Eagle Club metaverse, and had no intention of developing the $WING token. In fact, the defendants had no plans for the future of Meta Eagle Club NFTs aside from profiting off the excitement around the digital asset. As a result, the defendants committed common law fraud, unjust enrichment, and/or violations of the New York Gen. Bus. Law § 349.
 
The case is Aamer v. Eden Gallery Group Ltd., No. 24-cv-07678, pending in the U.S. District Court for the Southern District of New York.
 

• Phone: Chet B. Waldman - 212-451-9624
• Phone: Joshua W. Ruthizer - 212-451-9668
• Phone: Matthew Insley-Pruitt - 212-451-9621
• Phone: Justyn Millamena - 212-451-9609
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