DraftKings Inc. has agreed to a $10 million settlement in response to a class-action lawsuit alleging that its sale of non-fungible tokens violated state and federal securities laws.
The lawsuit, initiated in 2023, argued that DraftKings’ NFTs should have been registered as securities, and the failure to do so constituted a legal violation.
The proposed settlement aims to compensate individuals who purchased, held, or sold DraftKings non-fungible tokens from Aug. 11, 2021, until the date the judgment is entered.
In a brief supporting the settlement’s approval, the plaintiffs described the agreement as the result of “vigorous litigation and serious, arm’s-length negotiation,” urging the court to deem it “fair, reasonable, and adequate,” according to Bloomberg.
You might also like: SEC and MetaMask creator Consensys agree to end lawsuit
How to classify NFT’s
This legal challenge is part of a broader trend scrutinizing the classification of NFTs under securities law.
In a related case, Dufoe v. DraftKings Inc., a federal judge in Massachusetts ruled that the plaintiffs had plausibly alleged that DraftKings’ non-fungible tokens could be considered investment contracts under the Howey test, which determines what constitutes a security.
The court noted that, despite the NFTs trading on an independently existing blockchain, all transactions occurred through a marketplace controlled by DraftKings, thereby satisfying certain criteria of the Howey test.
These developments underscore the evolving legal landscape surrounding NFTs and their classification under securities laws.
Companies engaging in the creation and sale of NFTs are increasingly facing legal challenges that question whether these digital assets should be regulated as securities, prompting a reevaluation of business practices and compliance strategies within the burgeoning NFT market.
You might also like: Bitcoin price down 12% this week as fear index plummets to 2022 levels
buy clomid without dr prescription cost clomiphene without insurance order clomiphene for sale where can i get cheap clomiphene cost generic clomiphene pills buy clomiphene price clomiphene sleep apnea
Good blog you have here.. It’s intricate to espy elevated status belles-lettres like yours these days. I really comprehend individuals like you! Rent care!!
This is the big-hearted of writing I positively appreciate.
azithromycin 250mg us – order tetracycline without prescription metronidazole 400mg brand
purchase semaglutide without prescription – order semaglutide 14mg online buy generic periactin 4 mg
buy motilium tablets – order sumycin 500mg without prescription buy generic flexeril 15mg
buy inderal 10mg – methotrexate 5mg without prescription buy methotrexate 2.5mg
augmentin 375mg sale – https://atbioinfo.com/ generic acillin
esomeprazole over the counter – nexiumtous cost esomeprazole
order warfarin online cheap – anticoagulant cozaar where to buy
order mobic for sale – https://moboxsin.com/ buy mobic 7.5mg online cheap
buy generic prednisone 5mg – corticosteroid deltasone ca
where to buy ed pills online – https://fastedtotake.com/ buy ed pills uk
fluconazole 100mg usa – diflucan 200mg pill fluconazole pills
buy cenforce 50mg generic – cenforce 100mg for sale purchase cenforce for sale
tadalafil 40 mg with dapoxetine 60 mg – buying cialis cheap cialis canada
More posts like this would persuade the online space more useful. https://gnolvade.com/
how to order viagra in australia – https://strongvpls.com/# best place order viagra
This website absolutely has all of the low-down and facts I needed about this thesis and didn’t know who to ask. https://ursxdol.com/provigil-gn-pill-cnt/
Proof blog you possess here.. It’s intricate to espy high worth writing like yours these days. I truly appreciate individuals like you! Rent care!! buy gabapentin pills for sale
This is the description of serenity I have reading. https://prohnrg.com/product/acyclovir-pills/
Thanks an eye to sharing. It’s first quality. https://ondactone.com/product/domperidone/
The depth in this ruined is exceptional.
order reglan pill
This is the gentle of criticism I positively appreciate. http://3ak.cn/home.php?mod=space&uid=229026
dapagliflozin over the counter – https://janozin.com/# cost forxiga
orlistat for sale online – click orlistat 120mg price