A class action lawsuit has been filed against sports betting operator DraftKings for allegedly selling NFTs (non-fungible tokens) as unregistered securities.
The lawsuit, Justin Dufoe v. DraftKings, Inc., appears to stem from the significant losses people have accumulated over the tanking of the NFT market. In January, Fanatics announced it sold its 60% stake in NFT Candy Digital, to Galaxy Digital.
All NFTs, whether sports memorabilia, art, music, or videos, have a unique digital identifier that certifies authenticity and ownership. Many had hoped these one-of-a-kind digital tokens could fetch significant profits on the secondary market, similar to physical art pieces.
Customers can browse the DraftKings Marketplace for one-of-a-kind NFTs, which is where this lawsuit stems from.
