An NFT Project that falsely advertised itself to collaborate with a famous game company Riot Games received investors’ complaints and terminated its operation.

On March 21, LOL-CLUB, NFT based on Kakao’s blockchain platform Kalytn, faced false advertisement suspicion. This project induced the investment or purchase of investors by advertising collaboration with Riot Games, skin airdrops, Riot Games E-sports airdrop etc. LOL-CLUB promoted the premium membership NFT of League of Legends game utility and induced investors with slogans saying “with the growth from the NFT and game communities, we expect collaborations with Riot Gams as well as professional teams.

LOL-CLUB continued to issue NFTs even after collaboration with partnership companies came to an end after suspicious circumstances were later found. LOL-CLUB faced strong complaints from investors, eventually terminating the project, posting a written apology and proceeding full refunds.

Partner attorney Ohoon Kwon prospected, “even though full refunds have been made, it may constitute fraud if investors report the case. However, prosecution is unlikely in that full refunds have been made but penalty for false advertising is possible. [Pinpoint News 2022-03-22]

URL: Investors Outraged at NFT Project’s False Advertisement “Collaboration with Famous Game Company”