Legal Battle Persists for Dapper Labs Post-SEC Investigation

Reports uncover that the U.S. Securities and Exchange Commission (SEC) has ended its probe into Dapper Labs, the institution down notable NFT projects similar NBA Top Shot and CryptoKitties, and the multi-purpose FLOW blockchain. However, a ineligible conflict continues.  

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

Nevertheless, contempt its end, Dapper Labs’ troubles persist. The web3 steadfast faces an ongoing class-action lawsuit that claims NBA Top Shot Moments are efficaciously unlicensed securities.

As this suit continues, with each depositions expected to beryllium completed by June 17, Dapper Labs’ last ineligible outcomes stay uncertain.

Source: Dapper Labs (Top Shot)

Dapper Labs’ Growth and Challenges

Since launching CryptoKitties successful precocious 2017, Dapper Labs soon noticed accelerated maturation successful the integer collectibles space. Momentum carried guardant with the instauration of NBA Top Shot, which garnered endorsements from salient hoops players and generated important trading activity.

Yet, the NFT manufacture saw a notable diminution successful the task successful 2022, with plummeting income volumes, compelling Dapper Labs to downsize its workforce successful 2023. 

Such transitions took spot amid a broader regulatory environment, peculiarly aft the downfall of the FTX exchange, with the SEC intimately inspecting crypto-focused businesses.

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