The post DraftKings lawsuit advances in the US, ushering a new era for NFT securities trials appeared on BitcoinEthereumNews.com.

A Massachusetts judge has refused DraftKings’ motion to dismiss a class action lawsuit filed by buyers of its non-fungible tokens (NFTs). The suit contends that the tokens constitute investment contracts, paving the way for a future legal struggle over whether NFTs are securities.  Also Read: Bittensor’s TAO tanks 13% after a $8M crypto hack DraftKings, a daily fantasy sports and sports betting site sells sports-themed NFTs in its marketplace using the Polygon blockchain. The United States SEC has gone after several cryptocurrencies claiming they are securities, and that did not age well. The present shift to NFTs stands to usher in a new era of NFTs classification. A new legal era of NFTs trial on unregistered securities Plaintiff Justin DuFoe claims the DraftKings NFTs constitute unregistered securities and that many of the investors who buy them “lack the technical and financial sophistication necessary to evaluate the risks associated with their investment.” DuFoe filed a lawsuit against the entity in March 2023. DuFoe claims that he and other customers purchased DraftKings NFTs at the company’s first public offering, hoping the NFT platform would enable them to “realize profits.” The lawsuit alleges: The profits would be realized when the Plaintiffs and the Class sell their NFTs on the secondary market platform that DraftKings owned and managed solely. Lawsuit  DuFoe alleges he and others were eventually “entirely dependent” on DraftKings’ managerial efforts when they purchased the NFTs and later sold them on a secondary market controlled by the company.  Michael G. Bongiorno, Andrew S. Dulberg, and Michelle L. Sandals from Wilmer Cutler Pickering Hale and Dorr stepped in to represent DraftKings. DraftKings investment contracts brought into question? According to the class action lawsuit, the NFT entity “had actual knowledge of facts,” indicating that the NFTs they advertised and sold were securities under federal and state…

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Filed under: News - @ July 3, 2024 10:18 am