Drake Faces RICO Lawsuit Over Crypto Casino Stake and Music Streaming Fraud Allegations
Pop culture icon and world-renowned rapper Drake, alongside streamer Adin Ross, has been embroiled in a new class-action lawsuit filed in the U.S. District Court for the Eastern District of Virginia. The lawsuit accuses Drake and others of using the tipping feature on the popular crypto-based gambling website Stake to obscure financial transactions linked to fraudulent music streaming campaigns.
Allegations of Illegal Activities at Stake
According to the filing, Drake, Adin Ross, and George Nguyen—a co-defendant allegedly assisting with these fraudulent activities—violated the Racketeer Influenced and Corrupt Organizations Act (RICO). This act is typically invoked in cases of organized crime. The lawsuit claims Stake.us, a U.S.-facing offshoot of Stake, operates as an illegal online gaming platform that misrepresents itself as a safe and legal “social casino.”
The central allegations include the misuse of Stake’s tipping feature to facilitate unregulated financial transactions and fund fake music botting campaigns aimed at inflating Drake’s statistics on major streaming platforms. Plaintiffs claim this activity violates federal and Virginia state laws.
Stake and Misleading Gambling Practices
The lawsuit, brought forward by Virginia residents LaShawnna Ridley and Tiffany Hines, alleges Stake.us lures customers into spending real money under the guise of virtual casino coins, bundling Gold Coins with redeemable Stake Cash. These coins are allegedly redeemable for cryptocurrencies—a structure that the lawsuit argues effectively bypasses U.S. gambling regulations.
It was further alleged that these practices expose consumers to financial risks, gambling addictions, and significant monetary losses. Those who wagered and lost money through Stake Cash over the last three years in the United States are being represented in this suit, which demands damages totaling no less than $5 million.
Previous Lawsuits Against Drake and Ross
This is not the first time Drake and Ross have faced legal troubles over their association with Stake. In a separate lawsuit filed earlier this year in Missouri, the pair were accused of promoting the platform to young audiences under fraudulent pretenses, further increasing the risks of gambling addiction and financial harm.
A Powerful Push for Accountability
“This consumer class-action seeks to stop Stake.us from preying upon consumers,” the lawsuit reads, “and to ensure that legal measures are enforced to protect the financial and emotional welfare of individuals and families across the U.S.” Stake.us is alleged to have misled users by falsely marketing itself as a harmless social casino while operating effectively as an illegal gambling site.
The Bigger Picture
This case highlights the growing challenges of moderating online gambling platforms and crypto transactions. As the boundaries between entertainment, tech, and gambling blur, calls for stricter regulation are growing louder.
If you’re interested in better understanding gambling addiction prevention, check out services like the BeGambleAware organization. Alternatively, those interested in crypto investment should consider well-established platforms with regulatory clarity, such as Coinbase.
