Southern District Of New York Declines To Dismiss Putative Class Action Against Blockchain Technology Company, Holding That Non-Fungible Tokens Were Adequately Alleged To Be “Securities”
02/28/2023
On February 22, 2023, Judge Victor Marrero of the United States District Court for the Southern District of New York declined to dismiss a putative class action asserting claims under the Securities Act of 1933 against a blockchain technology company and its CEO. Friel v. Dapper Labs, Inc., —F. Supp. 3d—, 2023 WL 2162747, at *1 (S.D.N.Y. 2023). Plaintiffs alleged that the company’s offer and sale of non-fungible tokens (“NFTs”) constituted a sale of unregistered securities. The Court held that plaintiffs adequately alleged that the NFTs in question were securities subject to SEC registration requirements.
