New class action alleges racketeering conspiracy that exploited consumers
New class action lawsuit filed by two consumers in Virginia accuses music star Drake, the streamer Adin Ross and a third Australia-based man who lured users to real money games on the Stake.us casino platform as part of an extortion plot that allegedly used the proceeds to “artificially inflate the number of games in Drake’s catalog.”
Photo: Prince Williams/Wireimage/Rolling Stone Brazil
The suit, filed in federal court in Virginia, alleges that the three men worked with the Staking to “exploit consumers”, illegally expose them to “substantial risks of gambling addiction” and compromise their financial well-being. The plaintiffs claim they were “incentivized to participate” in the “predatory betting environment” of Staking after viewing the paid promotion of Duck website, including betting sessions and live draws.
According to the complaint, Duck, Ross and the Australian citizen, identified as George Nguyenacted as “zealous promoters” of Staking in exchange for payment and access to the platform, which the lawsuit describes as a secret “money transfer channel.” (THE Stakingwhich belongs to Sweepsteaks Ltd. in Cyprus and operates Stake.us from offices in Dallas, Ross And Nguyen did not immediately respond to a request for comment. A representative of Duck declined to comment.)
The process, presented by LaShawnna Ridley And Tiffany Hinesalleges that the three men used the user-to-user “tipping” feature of Staking to transfer money directly between them. The complaint calls the program “a completely unregulated, unlimited money transmitter that appears to exist outside the oversight of any financial regulator.” It further alleges that the funds were then used to finance fraudulent reproductions of the song by Duck and “amplification campaigns” that sometimes targeted competitors with derogatory content.
“At the center of the system, Duck – acting directly and through willing, knowledgeable accomplices – deployed automated bots and game farms to artificially inflate the number of plays played by his music on major platforms such as Spotify“, states the complaint, echoing allegations made in a recent case against the Spotify. “This manipulation removed authentic artists and restricted consumers’ access to legitimate content by undermining the integrity of curated experiences.”
Nguyen is identified in the complaint as the owner of the clippings account of Instagram @grandwizardchatn***a. The lawsuit alleges that he served as an “operational broker and facilitator” receiving cryptocurrencies through the company’s channels. Staking as part of the alleged conspiracy, then “interacting with bot sellers, overseeing coordinated amplification strategies, and integrating paid ‘snipe’ campaigns” across social media platforms, including the Xpreviously Twitter.
The document states that public posts, chat logs and leaked communications document the “direct processing of Nguyen via multiple payment platforms, orchestration and amplification of narrative waves” alongside Duck And Ross. It claims the scheme dates back to 2022 and “remains a continuing and imminent threat of extortion activity.”
“Plaintiffs were harmed by Defendants’ mishandling of false marketing and abuse. Duck, Ross And Nguyenwho participate in the marketing of Staking“, the complaint states. It adds that the plaintiffs were “manipulated into registering and transacting on Stake.us based on the defendants’ representations.”
The lawsuit seeks to represent Virginia residents who have lost one or more bets using Stake Cash over the past three years. It includes allegations that the defendants violated the Virginia Consumer Protection Act, engaged in a racketeering conspiracy, and conducted racketeering activities in violation of the federal RICO statute.
The process is not the first to target Duck39 years old, and Ross25 years, for his links with the Staking. Last October, a Missouri man filed a similar proposed class-action lawsuit against the men and women. Sweepsteaks Limited. An attorney representing the three defendants successfully moved that case from Missouri state court to federal court last month. (The attorney did not respond to a request for comment sent Thursday.)
The Missouri and Virginia lawsuits allege that Stake.us uses an illegal dual currency scheme that bundles supposedly non-tradable virtual “gold coins” with a second type of token, called “Stake Cash,” that can be cashed out for real money. This type of dual currency model is seen as a flaw by critics and has faced backlash from lawmakers. The Governor of California, Gavin Newsomapproved a bill last year to address the problem.
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