Investigation Abruptly Closed
Fortune Magazine recently reported that the Securities and Exchange Commission (SEC) investigated Dapper Labs, a prominent NFT company, until September 2023. However, the investigation was abruptly closed, leaving many questions unanswered.
Reasons for Investigation Unclear
The SEC has not disclosed the reasons for the investigation, its duration, or why it was closed. They also declined to comment on the investigation’s existence.
SEC’s Focus on NFT Industry
The SEC’s investigation into Dapper Labs follows settlements with other NFT projects for allegedly offering unregistered securities. This indicates that the SEC is paying close attention to the NFT industry.
Caution Still Needed
While the SEC’s closure of the Dapper Labs investigation may provide some reassurance, securities lawyers caution that not all NFTs are safe. Certain NFT transactions could still be considered securities transactions.
Ongoing Class Action Lawsuit
A class action lawsuit against Dapper Labs alleging unregistered securities in NBA Top Shot Moments is still ongoing.
SEC’s Crackdown Continues
Despite closing the Dapper Labs investigation, the SEC’s enforcement actions against the cryptocurrency industry continue. They recently issued a Wells Notice to Uniswap Labs, indicating potential enforcement action.
