{"id":33634,"date":"2024-07-05T04:45:34","date_gmt":"2024-07-05T04:45:34","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/judge-keeps-nft-sale-suit-against-draftkings-alive\/"},"modified":"2024-07-05T04:45:34","modified_gmt":"2024-07-05T04:45:34","slug":"judge-keeps-nft-sale-suit-against-draftkings-alive","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/judge-keeps-nft-sale-suit-against-draftkings-alive\/","title":{"rendered":"Judge Keeps NFT Sale Suit Against DraftKings Alive"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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A federal judge recently ruled that a proposed class action lawsuit against DraftKings will proceed. The lawsuit alleges that DraftKings \u201cviolated federal securities laws by not properly registering its non-fungible tokens (NFTs),\u201d according to Bloomberg.<\/p>\n

Judge Denise Casper of the US District Court for the District of Massachusetts presided over the hearing. Plaintiff Justin Dufoe had engaged in buying and selling NFTs on the DraftKings Marketplace from February 2022 to February 2023. Dufoe claimed that he and others \u201cexpected to make a profit off of the NFTs,\u201d but many of his NFTs either sold at a loss or became worthless.<\/p>\n

Dufoe argued that DraftKings\u2019 NFTs were investment contracts and therefore securities under the Securities Act of 1933 and the Securities Exchange Act of 1934. He is seeking restitution for his losses, claiming that the NFTs should have been registered as securities.<\/p>\n

DraftKings\u2019 Defense and Judge\u2019s Decision<\/strong><\/h2>\n

DraftKings countered that its NFTs were not securities and filed a motion to dismiss the case. However, Judge Casper denied the motion, emphasizing that NFTs are \u201ca digital asset whose ownership, including history of purchases and sales, is reflected in a blockchain.\u201d<\/em><\/p>\n

The judge further noted that DraftKings\u2019 NFTs \u201cfeature a static or dynamic image of a professional athlete.\u201d She stated, \u201cDufoe has sufficiently alleged the pooling of assets requirement because the revenue generated by the sale of NFTs was reinvested into DraftKings\u2019 business, including through the promotion of the Marketplace.\u201d<\/em><\/p>\n

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Judge Casper highlighted that although NFTs are non-fungible assets with prices that do not uniformly rise and fall, it remains plausible for the court to infer, and for plaintiffs to expect, that if DraftKings increased demand for its NFTs while limiting supply, the value of most NFTs in the ecosystem would rise. This decision means that the class action lawsuit will proceed, potentially setting a precedent for how NFTs are treated under securities laws.<\/p>\n

This case underscores the growing legal scrutiny surrounding NFTs and their classification under securities regulations. As the digital asset landscape evolves, companies like DraftKings may face increased regulatory challenges regarding their NFT offerings.<\/p>\n<\/p><\/div>\n

Source link <\/a>
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(Originally posted on : Crypto News – iGaming.org ) A federal judge recently ruled that a proposed class action lawsuit against DraftKings will proceed. The lawsuit alleges that DraftKings \u201cviolated federal securities laws by not properly registering its non-fungible tokens (NFTs),\u201d according to Bloomberg. Judge Denise Casper of the US District Court for the District […]<\/p>\n","protected":false},"author":35,"featured_media":33635,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/33634"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=33634"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/33634\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/33635"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=33634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=33634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=33634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}