NFT Image of Pepe the Frog’s Butt Cause $500K Lawsuit

A man paid more than $500K in an auction for an NFT image of Pepe the Frog showing its butt.
Only one NFT image auctioned, 500 cards issued, 400 burned, and 99 to remain in the PegzDAO.
Later on, PegzDAO distributed 46 of those 99 remaining NFT images for free.

Matt Furie, the creator of Pepe the Frog, decided to hold an NFT auction last year. Specifically, he planned to sell an image of the delicate internet meme cartoon frog bathing in a pool, with its buttcrack peeping over. Furie established a Decentralized Autonomous Organisation (DAO) called PegzDAO.

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On October 8, 2021, Furie, his company Chain/Saw, and PegzDAO carried out the auction of one NFT portraying the image of Pepe the Frog showing its butt while bathing. Evidently, he stated that he would mint 99 more NFTs of the same image. Furthermore, he said that he will keep the NFTs in the DAO’s custody.

According to the report of Web3 Is Going Just Great, a guy named Halston Thayer spent 150 ETH. This equals to $537,084 at the time of purchase. Not long after his bizarre purchase, PegzDAO distributed for free the exact same image of 46 of those other 99 NFTS. In contrast, Thayer paid half a million dollars.

On March 12, 2021, Thayer decided to file a lawsuit, indicating that the additional free 46 identical NFTs released “significantly devalu[ed] Plaintiff’s Pepe NFT to less than $US30,000”.

The suit introduced with:

“This action arises from Defendants’ unlawful, unfair, and fraudulent business practices, which includes their unfair, deceptive, untrue, and misleading advertising and wrongful actions with respect to an auction for a particular nonfungible token (“NFT”) that led Plaintiff and others to grossly overbid on the NFT.

The document continued, accusing Furie of various accusations. In detail, these include fraudulent inducement, intentional and negligent misrepresentation, to name a few.

Now, Thayer is aiming to receive compensation for his original purchase of the NFT image. In addition, he is demanding payment for punitive damages and attorney’s fees.