Dapper Labs sued for selling NBA Top Shot Moments NFTs as unregistered securities

Source | Token Hell

A potential lawsuit has alleged Dapper Labs’ failure in allowing customers to earn from their NBA Top Shot moments in good time. Jeeun Friel from Virginia is litigating Dapper Labs (the creator of NBA Top Shots). NBA Top Shot is a blockchain platform for virtual collectibles that users can use to buy, sell and trade video highlights or moments as NFTs. This year sees a rapid rise in the demand for this product. 

Hence, the company is seeking new funds despite being valued at almost $8 billion. Friel claims that the NFTs are securities and Dapper Labs puts her and other customers in harm’s way by not disclosing this fact with them or registering these NFTs as securities with the sec. Filed yesterday, Friel is seeking that a New York state court should declare that the company and Roham Gharegozlou, its CEO infringed on securities law and must pay her and other NFT buyers an undisclosed amount in damages. 

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