On February 29, 2023, it was reported that Dapper Labs, the company behind popular NFT projects such as NBA Top Shot and CryptoKitties, had been the subject of a probe by the Securities and Exchange Commission (SEC). The specific details of the SEC’s investigation and the reasons for its closure were not disclosed.
According to Fortune, Dapper Labs was made aware of the SEC’s scrutiny into its activities. The SEC’s argument was that these NFT projects were involved in the offering and sale of securities without proper registration, which would violate federal laws.
In a significant development, a federal judge ruled against dismissing the lawsuit in February 2023. This ruling seemed to suggest that the claim that these NFTs could be classified as securities had merit.