Legal Battle Persists for Dapper Labs Post-SEC Investigation

Studies 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 Prime Shot and CryptoKitties, and the multi-purpose FLOW blockchain. However nonetheless, a authorized battle continues.  

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

Nonetheless, regardless of the investigation’s finish, Dapper Labs’ troubles persist. The web3 agency continues to face an ongoing class-action lawsuit that claims NBA Prime Shot Moments are successfully unlicensed securities.

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

Dapper Labs’ Development and Challenges

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

But, the NFT trade 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 befell amid a broader regulatory setting, significantly after the downfall of the FTX trade, with the SEC carefully inspecting crypto-focused companies.

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