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News

Dapper Labs Investigation Targeted by SEC Since 2023 But Now Over

April 11, 2024 - Around 2 mins mins to read

Key Points:

  • The SEC concluded Dapper Labs investigation, known for NBA Top Shot and CryptoKitties, ended without disclosing reasons or dates.
  • Dapper Labs faces a class action lawsuit over its NBA Top Shot Moments, alleging unregistered securities, amid a volatile NFT market.
  • Despite layoffs and market fluctuations, Dapper Labs continues operations and partnerships with sports leagues.
The US Securities and Exchange Commission (SEC) has concluded an investigation into Dapper Labs, the prominent non-fungible token (NFT) company behind NBA Top Shot and CryptoKitties.
Dapper Labs Investigation Targeted by SEC Since 2023 But Now Over

SEC Concludes Dapper Labs Investigation

The Dapper Labs investigation revealed in an internal SEC document obtained by Fortune, was terminated by David Hirsch, the regulator’s crypto and cyber unit chief, on September 29.

The one-page “Case Closing Report” did not disclose the reasons behind the Dapper Labs investigation, its commencement date, or the rationale for closing it. This development follows the SEC’s settlements with Impact Theory and Stoner Cats in August and mid-September, respectively, marking the agency’s initial actions against the NFT industry. The SEC alleged that both projects offered unregistered securities, violating federal law.

Dapper Labs, which has amassed over $600 million since its inception in 2018, is also embroiled in a class action lawsuit alleging that NBA Top Shot Moments, its NFTs, are unregistered securities. While the company claims it was unaware of the SEC investigation, it acknowledges the case’s closure.

CEO Gharegozlou Leads Resilient Strategy

Founded by Roham Gharegozlou in late 2017, Dapper Labs gained fame with CryptoKitties, a blockchain-based game. Its subsequent venture, NBA Top Shot, soared in popularity, generating over $226 million in monthly sales by February 2021. However, the NFT market crashed in 2022, leading Dapper Labs to downsize its workforce and undergo successive layoffs.

Despite the setbacks, Dapper Labs continues its operations with slightly fewer than 180 employees, focusing on partnerships with sports leagues like the NFL and LaLiga.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

cryptokitties

Dapper Labs

nba top shot

NFT

SEC

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Dapper Labs Investigation Targeted by SEC Since 2023 But Now Over

Key Points:

  • The SEC concluded Dapper Labs investigation, known for NBA Top Shot and CryptoKitties, ended without disclosing reasons or dates.
  • Dapper Labs faces a class action lawsuit over its NBA Top Shot Moments, alleging unregistered securities, amid a volatile NFT market.
  • Despite layoffs and market fluctuations, Dapper Labs continues operations and partnerships with sports leagues.
The US Securities and Exchange Commission (SEC) has concluded an investigation into Dapper Labs, the prominent non-fungible token (NFT) company behind NBA Top Shot and CryptoKitties.
Dapper Labs Investigation Targeted by SEC Since 2023 But Now Over

SEC Concludes Dapper Labs Investigation

The Dapper Labs investigation revealed in an internal SEC document obtained by Fortune, was terminated by David Hirsch, the regulator’s crypto and cyber unit chief, on September 29.

The one-page “Case Closing Report” did not disclose the reasons behind the Dapper Labs investigation, its commencement date, or the rationale for closing it. This development follows the SEC’s settlements with Impact Theory and Stoner Cats in August and mid-September, respectively, marking the agency’s initial actions against the NFT industry. The SEC alleged that both projects offered unregistered securities, violating federal law.

Dapper Labs, which has amassed over $600 million since its inception in 2018, is also embroiled in a class action lawsuit alleging that NBA Top Shot Moments, its NFTs, are unregistered securities. While the company claims it was unaware of the SEC investigation, it acknowledges the case’s closure.

CEO Gharegozlou Leads Resilient Strategy

Founded by Roham Gharegozlou in late 2017, Dapper Labs gained fame with CryptoKitties, a blockchain-based game. Its subsequent venture, NBA Top Shot, soared in popularity, generating over $226 million in monthly sales by February 2021. However, the NFT market crashed in 2022, leading Dapper Labs to downsize its workforce and undergo successive layoffs.

Despite the setbacks, Dapper Labs continues its operations with slightly fewer than 180 employees, focusing on partnerships with sports leagues like the NFL and LaLiga.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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