Dapper Labs, which released a collection of non-fungible NBA Top Shots tokens, has come under the radar of the US Securities and Exchange Commission (SEC). According to Fortune, the regulator conducted an investigation into the organization’s activities, which was closed in September 2023.
In a document designated as a “case closure report,” head of cryptocurrency and cybersecurity David Hirsch announced the conclusion of the investigation. The SEC representative did not specify the purpose for which it was carried out and why the regulator decided to close it.
Note that NBA Top Shots from Dapper Labs was one of the top NFT collections in 2021. The project allows users to collect non-fungible tokens that represent memorable moments from the National Basketball Association.
“The commission never contacted us, we knew nothing about this investigation. Despite this, it appears the SEC has closed the case,” a Dapper Labs spokesperson said.
The agency's decision to stop investigating Dapper Labs may indicate a softening of the SEC's policy regarding NFTs, says Seward & Kissel lawyer Philip Moustakis. However, he added that market participants still need to exercise caution regarding non-fungible tokens. Some NFT transactions may be considered securities transactions, Moustakis noted.
Let us recall that in August 2023, the Commission accused the media company Impact Theory of promoting securities without registration. The firm used NFTs to attract investors, raising about $30 million.
