Reports reveal that the US Securities and Exchange Commission (SEC) has completed its investigation into Dapper Labs, the company behind notable nft projects such as NBA Top Shot and CryptoKitties, and the multipurpose blockchain FLOW. But still, a legal 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 reasons for both the initiation and conclusion of the investigation remained confidential.
However, despite the end of the investigation, Dapper Labs' problems persist. The web3 firm continues to face a ongoing class action lawsuit which claims that NBA Top Shot Moments are effectively unlicensed securities.
As this lawsuit progresses, with all depositions expected to be completed by June 17, Dapper Labs' final legal outcomes remain uncertain.
Source: Dapper Labs (Top Shot)Dapper Labs Growth and Challenges
Since its launch Cryptokitties In late 2017, Dapper Labs soon noticed rapid growth in the digital collectibles space. Momentum continued with the introduction of NBA Top Shot, which gained endorsements from prominent basketball players and generated significant commercial activity.
However, the nft industry saw a notable project drop in 2022, with a drop in sales volumes, forcing Dapper Labs to reduce its workforce in 2023.
These transitions took place amid a broader regulatory environment, particularly after the FTX exchange crashand the SEC closely inspects cryptocurrency-focused companies.
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