Draftkings Inc. Has agreed on the disposal of $ 10 million in response to the class-action trial, alleging that the sale of non-fangbal tokens has violated state and federal securities laws.
The trial launched in 2023 argued that the NFTs of draftings should have been registered as securities, and failure to do so formed a legal violation.
The purpose of proposed settlement is to compensate individuals who from August 11, 2021, until the decision is filed, drafkings were purchased, held or sold.
In a brief supporting disposal approval, the plaintiff described the agreement as “vigorous litigation and serious, conversation of hand length”, urged the court that it was “appropriate, appropriate and enough,”, According To Bloomberg.
How to classify NFT
This legal challenge is part of a comprehensive tendency investigating the classification of NFT under the Securities Act.
In a related case, a federal judge in Massachusetts, Dufoe v. Draftkings Inc. Government The plaintiff had clearly alleged that the non-fangbal tokens of draftings could be considered an investment contract under the Hovi Test, which determines what the formation of security is.
The court mentioned that, despite NFTS trading on the existing blockchain independently, all transactions were controlled by draftings through a market, which satisfied some criteria of the hove test.
These developments underline their classification under the legal landscape and securities laws around NFT.
Companies engaged in NFT manufacturing and sales are rapidly facing legal challenges, asking whether these digital assets should be regulated as securities, which inspires the revaluation of business practices and compliance strategies within the NFT market.
