Legal Battle Persists for Dapper Labs Post-SEC Investigation

Reviews reveal that the U.S. Securities and Alternate Fee (SEC) has ended its investigation into Dapper Labs, the corporate behind notable NFT initiatives like NBA High Shot and CryptoKitties, and the multi-purpose FLOW blockchain. Nevertheless, a authorized battle continues.  

Fortune reported that the SEC’s cryptocurrency and cybersecurity division, led by David Hirsch, ended its inspection into Dapper Labs on September 29. The explanations for each the initiation and conclusion of the probe remained confidential.

Nonetheless, regardless of its finish, Dapper Labs’ troubles persist. The web3 agency faces an ongoing class-action lawsuit that claims NBA High Shot Moments are successfully unlicensed securities.

As this lawsuit continues, with all depositions anticipated to be accomplished by June 17, Dapper Labs’ ultimate authorized outcomes stay unsure.

dapper labs SEC Supply: Dapper Labs (High Shot)

Dapper Labs’ Progress and Challenges

Since launching CryptoKitties in late 2017, Dapper Labs quickly seen fast progress within the digital collectibles area. Momentum carried ahead with the introduction of NBA High Shot, which garnered endorsements from outstanding basketball gamers and generated substantial buying and selling exercise.

But, the NFT business noticed a notable decline within the venture in 2022, with plummeting gross sales volumes, compelling Dapper Labs to downsize its workforce in 2023. 

Such transitions came about amid a broader regulatory setting, significantly after the downfall of the FTX alternate, with the SEC intently inspecting crypto-focused companies.

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