💼💻🔖 A federal judge has ruled that Dapper Labs’ NBA-branded “Top Shot” non-fungible tokens (NFTs) may be securities. The ruling comes after a class-action lawsuit was filed against Dapper Labs and its CEO, Roham Gharegozlu, alleging that they violated federal securities laws by offering a non-fungible token collection, the NBA Top Shot Moments, without registering with the U.S. Securities and Exchange Commission. The judge’s decision denied Dapper Labs’ motion to dismiss the lawsuit, stating that the plaintiffs’ allegations are adequate to support a finding that Moments were primarily purchased for an investment purpose. As per the judge’s ruling, FLOW tokens are necessary to the totality of the scheme at issue, and the tokens’ utility creates value for Moments through the network’s consensus as to ownership and the price of each transaction. The ruling has significant implications for the NFT industry and raises questions about the legal status of other NFT offerings.
Dapper Labs NFT under investigation
- February 24, 2023