Dapper Lab Judge Victor Marreo nba top shot The class action lawsuit states that the NFTs may be securities. The ruling was rendered Wednesday after a judge dismissed Dapper Labs CEO Roham Gharegozlou’s motion to dismiss a lawsuit alleging that NFTs are not securities.
By denying the motion, the judge allowed the case to proceed, and Dapper Labs now has 21 days to act on the court’s decision. To reach its decision, the judge considered the Howey Test, a method used by the SEC to determine whether a transaction constitutes a transaction. “investment contract” or not. If NFTs qualify as investment contracts, they can be classified as securities.
Court filings state: “Ultimately, the court’s conclusion that what Dapper Labs offered was the investment agreement under Howey is narrowly defined. should be evaluated on a case-by-case basis.”
but, “The specific scheme in which Dapper Labs offers Moments creates a legal relationship sufficient to establish an investment contract between an investor and a promoter, which is security under Howey.” influenced the judge’s decision.
Judgment does not declare NBA Top Shot NFTs as securities
Despite the ruling, it does not mean that NBA Top Shot NFTs are securities. At least, that’s the opinion of US attorney Jake Chervinsky, who in a tweet said the judge didn’t declare whether his NFT was a security.
This is incorrect.
The judge decided nothing. He allowed the case to proceed through a motion to dismiss because the securities’ claims were at least “plausible,” a very low standard, and not a final judgment.
Should I say, “Basketball is not a security”? ? ? https://t.co/W1yYVcW1Ki
— Jake Chervinsky (@jchervinsky) February 22, 2023
He continues, adding: “This controversy aside, it would be ridiculous if every valuable digital asset stored in a centralized database was a security.”
This class action lawsuit against Dapper Labs was filed in May 2021 by plaintiff Jeeun Friel. He accused Dapper Labs of selling his NFTs as unregistered securities.
want more? Connect with NFT Plaza
*All investment/financial opinions expressed by NFT Plaza are based on the personal research and experience of the site moderators and are intended for educational material only. , the product should be thoroughly investigated.
Basil is an avid fan of blockchain technology and all its innovations, and is passionate about sharing this story with his audience. He has spent his 5+ years in the crypto space, specializing in research and creating his Web3 content for various media outlets around the world.