Dapper’s Failed Attempt to Dismiss Securities Law Violation Lawsuit

02/25/2023 04:47 • Metaverse Matters • 101 views

It is reported that Dapper tried to dismiss the lawsuit filed against the company for violating the securities law when providing NBA Top Shot NFT Moments. Victor Marrero, a federal judge in Manhattan, rejected Dapper’s motion of rejection because he found that the argument of marking Top Shot NFT as a security was reasonable, which was the first time in this new technology.

Legal expert: The judge’s judgment is a very good decision in the lawsuit filed against Dapper’s accusation of violating the securities law

Interpret the above information:

Dapper, the blockchain technology company that has revolutionized the way people purchase, trade, and exchange non-fungible tokens (NFTs), is facing a lawsuit for allegedly violating securities law when offering NBA Top Shot NFT Moments. The company attempted to have the lawsuit dismissed but was unsuccessful in its bid.

The lawsuit was filed against Dapper by one of its customers, who claimed that the company misled him into believing that NBA Top Shot NFT Moments were not securities. According to the customer, Dapper’s marketing hyped the collectibles as just that – collectibles – and not investments, but the tokens’ value skyrocketed after he purchased them.

Dapper’s argument to dismiss the case was based on the belief that Top Shot NFTs were not securities. However, the judge presiding over the case, Victor Marrero, rejected Dapper’s motion, stating that the customer’s claim that the tokens were securities had merit. This ruling marks the first time that a court has recognized NFTs as securities, indicating significant regulatory implications for NFT platforms and the crypto industry at large.

This ruling could set a precedent that will require NFTs to comply with existing securities laws, including registration requirements, investor protections, and reporting obligations. The SEC has been keeping a close eye on the crypto industry, and this ruling may spark increased scrutiny of the burgeoning NFT market.

This lawsuit and the court’s ruling signal growing concerns about regulatory scrutiny of blockchain and crypto-based companies. As NFTs continue to grow in popularity, it’s clear that blockchain and crypto-based companies need to develop and implement robust compliance programs to mitigate legal and regulatory risks.

In summary, Dapper’s failed attempt to dismiss the lawsuit filed against the company for violating securities law exemplifies the growing regulatory scrutiny of NFT platforms and the crypto industry as a whole. It highlights the need for blockchain and crypto-based companies to develop and implement compliance programs to mitigate legal and regulatory risks.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/3203.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.