Who Remembers the NELK Boys $23 Million NFT Scam?
Who Remembers the NELK Boys $23 Million NFT Scam?
The NELK Boys, a Canadian YouTube group known for their prank videos and vast social media presence, ventured into the NFT space in January 2022 with their Full Send Metacard collection. The project, consisting of 10,000 NFTs priced at approximately $2,300 each, sold out in minutes, grossing $23 million.
Nelk are popular YouTubers
— Pix🔎 (@PixSorcerer) July 19, 2024
In 2022 they had a podcast with Gary Vee, where they learned about NFTs
Having 8M fans it was a no-brainer to launch their own collection…
2/13 pic.twitter.com/3a02yBcu33
NELK Boys Promises Turned out to be Empty
The Metacards promised holders access to exclusive perks such as gyms, casinos, lounges, and festivals. Despite these grand promises, many NFT holders soon criticized the project’s execution and lack of delivered benefits. Holders reported minimal returns on investment and unfulfilled promises, quickly sparking accusations of the project being a scam.
As dissatisfaction grew, some holders took to social media and forums like Reddit to denounce the misuse of funds. Many suggested the possibility of a class action lawsuit due to the perceived lack of effort from the NELK Boys to deliver on their promises. Reports indicate that some users have even been banned from official channels for raising these issues.
So what rewards were effectively handed out? Not much as only 1.57% of the raised funds were used for the perks:
- 1 holder got $100k
- 1 person got a Rolex (~$12k)
- There were Merch and giftcards ($250k)
- 500 Allienfriend Collab NFTs ($0 cost)
Most money supposedly went into a new business
— Pix🔎 (@PixSorcerer) July 19, 2024
Back in 2022, a MetaCard holder approached Nelk to partner with his jerky company
They agreed and launched Bored Jerky
Same recipe, new packaging (check pic)
And here’s where it gets interesting…
7/13 pic.twitter.com/rZYJLsndku
And then… A New Business Venture
In 2022, they launched Bored Jerky, in short they rebranded the existing product with new packaging. After a year of minimal updates, NELK announced that MetaCard holders would receive 40% (phantom) shares in Bored Jerky. This meant holders would only profit if the company was sold or secured VC funding, leaving them in a precarious financial position.
After three months, Bored Jerky’s performance statistics were dismal:
- Website visits: 134 per month (average)
- Amazon Reviews: 101
- Amazon “Jerky” category rank: 321
- Combined followers (TikTok + Twitter + Instagram): 8,906
NELK Boys then offered a refund, but there were significant hurdles:
- Holders had only one month to apply.
- Refunds required a US bank account, excluding international holders.
As of now:
- The MetaCard Twitter has been renamed to “Full Send x Alien Frens NFT.”
- The last post was over a month ago.
- NELK’s bio no longer prominently features MetaCard.
Legal Issues and Controversies
Before the NFT scandal, the NELK Boys already had been involved in various legal issues and controversies. Here’s a few:
- January 2015: They posted a video titled “Coke Prank On Cops,” leading police officers to believe they had cocaine when they were referring to Coca-Cola. The video received 49 million views and is their most viewed video. The LAPD warned the public that the prank was illegal.
- January 2019: Jesse Sebastiani was arrested for disorderly conduct during a prank at a Barnes & Noble store in Columbus, Ohio.
- August 2019: A meetup in Ireland got out of control, leading to the removal of Jason Pagaduan from the group due to sexual harassment allegations.
- May 2020: Members were arrested for disturbing the peace while filming a prank at a Target store in Mississippi.
- September 2020: They hosted a flash mob at Illinois State University, violating COVID-19 regulations. YouTube demonetized their account, citing the Creator Responsibility Policy. Chris Koos, the town’s mayor, intended to pursue legal action against NELK. Shortly after, a gathering in Seaside Heights, New Jersey led to further legal trouble and arrests.
- March 2021: NELK was unable to upload a video due to an arrest warrant filed against Kyle Forgeard in Texas. CBS reported that they were responsible for a series of physical assaults at a group meet in Fort Worth, Texas.
Current NELK Boys Members and Structure
Current and recurring members include Kyle Forgeard, Stephen “SteveWillDoIt” Deleonardis, Salim Sirur, Gabriel Poncio, Aaron “Steiny” Steinberg, “Jimmy Gambles” (Arthur Kulik), and “Cousin Jay” (Jordan Nwanne). Canadian filmmaker Austin Ermes is NELK’s Lead Editor and Director of Content. The NELK headquarters is located in Newport Beach, California, with an offshoot location in Miami, Florida under SteveWillDoIt LLC. The group previously resided in Ontario, Canada, and Los Angeles.
Former NELK Boys Members
Jesse Sebastiani, a founding member, was known for his self-published documentary, Saved by the Status, and his role in the MTV show Careless Teens. Sebastiani eventually distanced himself from the group, focusing on the Full Send brand before starting his own brand called “Sunday” in 2022 (Market Realist). Other former members include Niko and Marko Martinovic, Lucas Gasparini, and Jason Pagaduan. Niko and Marko left in 2015 to pursue YouTube independently. Gasparini left in 2017 due to concerns over the channel’s content but returned in 2021. Pagaduan was removed in October 2019 for behavioral misconduct stemming from sexual harassment allegations.
Empty NELK Boys Words
Despite all this, NELK Boys maintain plans to develop real-world venues and events under the Full Send brand. However, their community has turned so skeptical, with many awaiting tangible progress on the promised perks, that it will probably be just empty words.
