{"id":555361,"date":"2023-02-22T23:04:14","date_gmt":"2023-02-22T20:04:14","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/dapper-labs-nba-top-shot-moments-may-qualify-as-a-security-says-u-s-judge\/"},"modified":"2023-02-22T23:04:14","modified_gmt":"2023-02-22T20:04:14","slug":"dapper-labs-nba-top-shot-moments-may-qualify-as-a-security-says-u-s-judge","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/dapper-labs-nba-top-shot-moments-may-qualify-as-a-security-says-u-s-judge\/","title":{"rendered":"# Dapper Lab&#8217;s NBA Top Shot Moments may qualify as a security, says U.S. judge"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a41a78ee5cf9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a41a78ee5cf9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/dapper-labs-nba-top-shot-moments-may-qualify-as-a-security-says-u-s-judge\/#%E2%80%9D_Dapper_Labs_NBA_Top_Shot_Moments_may_qualify_as_a_security_says_US_judge_%E2%80%9C\" >&#8221; Dapper Lab&#8217;s NBA Top Shot Moments may qualify as a security, says U.S. judge  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Dapper_Labs_NBA_Top_Shot_Moments_may_qualify_as_a_security_says_US_judge_%E2%80%9C\"><\/span>&#8221; Dapper Lab&#8217;s NBA Top Shot Moments may qualify as a security, says U.S. judge  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvYWY4MTZjZDAtYmU1Mi00YzU3LTg3YWItMmVhMzM0MjYyNmVlLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>\n<p class=\"post-content__disclaimer\">Updated (Feb. 22 at 9:00 pm in UTC): This article has been updated to include D<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>er Lab&#8217;s comments on the case.\u00a0<\/p>\n<p>NBA Top Shot Moments nonfungible tokens (NFTs) may be considered a security, as it meets the requirements under the United States security laws, according to court filings on Feb 22.\u00a0<\/p>\n<p>The decision comes as federal judge Victor Marreo denied a motion from Dapper Labs CEO Roham Gharegozlou to dismiss a class action lawsuit claiming its NBA Top Shot NFTs are securities. Upon denying the motion, the court authorized the case to proceed. Dapper Labs now has 21 days to respond to the court&#8217;s decision. <\/p>\n<p>For the verdict, the judge reviewed the Howey Test, which determines whether the NFTs qualified as an investment contract subject to U.S. securities laws, according to the court filings. A transaction that is determined to be an investment contract is considered to be a security.<\/p>\n<blockquote><p>&#8220;Ultimately, the Court\u2019s conclusion that what Dapper Labs offered was an investment contract under Howey is narrow. Not all NFTs offered or sold by any company will constitute security, and each scheme must be assessed on a case-by-case basis.&#8221;<\/p><\/blockquote>\n<p>Judge Victor Marreo also ruled that:<\/p>\n<blockquote><p>&#8220;Rather, it is the particular scheme by which Dapper Labs offers Moments that creates the sufficient legal relationship between investors and promoter to establish an investment contract, and this is a security, under Howey.&#8221;\u00a0<\/p><\/blockquote>\n<p>The class action lawsuit was filed in May 2021 by plaintiff Jeeun Friel for allegedly selling NFTs as unregistered securities. It also alleges that NBA Top Shot intentionally prevented collectors from withdrawing funds for \u201cmonths on end\u201d in order to artificially inflate the market value of the platform.\u00a0<\/p>\n<p>In response to Judge Marreo&#8217;s decision, a spokesperson for Dapper Labs told Cointelegraph:<\/p>\n<blockquote><p>\u201cImportantly, today\u2019s order &#8211; which the court described as a \u201cclose call\u201d &#8211; only denied the defendants\u2019 motion to dismiss the complaint at the pleading stage of the case. It did not conclude the plaintiffs were right, and it is not a final ruling on the merits of the case. Courts have repeatedly found that consumer goods \u2013 including art and collectibles like basketball cards \u2013 are not securities under federal law. We are confident the same holds true for Moments and other collectibles, digital or otherwise, and look forward to vigorously defending our position in Court as the case continues.\u201d<\/p><\/blockquote>\n<p>According to Dapper Labs, NBA Top Shot generated over $230 million in NFT&#8217;s sales as of February 2021, Cointelegraph reported.\u00a0<\/p>\n<p>This decision comes amid a broader debate about whether different digital assets should be considered securities. On Feb. 9, the U.S. the Securities and Exchange Commission (SEC) announced an $30 million settlement with crypto exchange Kraken regarding its staking services. The authority is also probing traditional Wall Street investment advisers offering digital asset custody to its clients without the proper qualifications. <\/p>\n<p>Most recently, the SEC announced a $1.4-million settlement with former NBA player Paul Pierce for allegedly promoting a token project on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a>.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/dapper-lab-s-nba-top-shot-moments-qualify-as-a-security-says-u-s-judge\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Dapper Lab&#8217;s NBA Top Shot Moments may qualify as a security, says U.S. judge &#8220; Updated (Feb. 22 at 9:00 pm in UTC): This article has been updated to include Dapper Lab&#8217;s comments on the case.\u00a0 NBA Top Shot Moments nonfungible tokens (NFTs) may be considered a security, as it meets the requirements under&#8230;<\/p>\n","protected":false},"author":1,"featured_media":555362,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/af816cd0-be52-4c57-87ab-2ea3342626ee.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[117,71433,70934,72287],"class_list":["post-555361","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-business","tag-court","tag-regulation","tag-security"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/555361","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=555361"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/555361\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/555362"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=555361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=555361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=555361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}