Magic Eden faces US class-action lawsuit over false advertising claims

Magic Eden (ME) and its key executives were hit with a class-action lawsuit from investors on June 16. The plaintiffs allege that Magic Eden promoted ME as the backbone of a growing online asset market but failed to deliver on its promises, causing substantial financial losses for investors. The lawsuit names co-founders Jack Lu, Zhuoxun Yin, Sidney Zhang, and Zhuojie Zhou, as well as operating entities Euclid Labs Inc. and the ME Foundation, as defendants. The case has been formally filed. ME, which reached a high of around $4.25 in December 2024, has since fallen by 98.62% and is currently trading at $0.05842.