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Cryptocurrency News Articles
OpenSea Sued for Misleading Investors, SEC’s NFT Stance Sparks Regulatory Concerns
Sep 21, 2024 at 06:06 am
OpenSea, one of the leading Non-Fungible Token (NFT) marketplaces, has been hit with a class action lawsuit. The lawsuit alleges that it engaged in
Non-Fungible Token (NFT) marketplace OpenSea has found itself at the center of a class action lawsuit, alleging the sale of unregistered securities. The complaint, filed in a Florida federal court by Moskowitz’s law firm on behalf of the plaintiff, alleges that OpenSea sold certain NFTs that qualified as securities under U.S. law. The law firm further claimed that the NFT market had violated U.S. securities regulations by not registering these assets with the proper authorities.
The legal action argues that two Florida residents, who purchased NFTs on OpenSea's platform, suffered substantial losses. According to the complaint, buyers of these NFTs were not provided with adequate disclosures, leading to these financial losses. The plaintiffs also alleged that OpenSea misled investors by presenting NFTs as securities, allowing the platform to profit through transaction fees.
This lawsuit adds to the ongoing debates within the crypto space about whether NFTs should be considered securities. The complaint asserts that these NFTs are considered securities, which are essentially investment contracts in which purchasers expect profits based on the efforts of others. To support this claim, the plaintiff pointed to the U.S. Securities and Exchange Commission’s (SEC) previous enforcement actions as backing proof.
In a similar case, the SEC sued Flyfish Club, an exclusive NFT-based restaurant project, over conducting an unregistered offering of crypto asset securities. Notably, the NFT project reached a $750,000 settlement with the regulatory agency over this matter.
The SEC's aggressive stance on NFTs has sparked debate within the crypto community. OpenSea's CEO, Devin Finzer, recently voiced concerns about the SEC’s strict regulatory approach after the platform received a Wells Notice in August. This came after Finzer shed light on the company’s adaptable stance towards potential acquisitions amidst the challenges faced by the NFT sector in January.
Finzer highlighted that NFTs, especially those representing digital art, should not be treated like traditional securities. Furthermore, Digital Chamber recently criticized the idea that the current regulatory framework is appropriate for NFTs.
Earlier this year, GameStop, the gaming retailer, had to shut down its NFT marketplace after two years of its launch. The platform mentioned that regulatory uncertainties largely contributed to this decision.
Meanwhile, OpenSea has been making innovative strides in the NFT space, continuing its operations despite the legal challenges. The platform is striving to establish itself as a frontrunner in the NFT domain.
In March, the NFT platform partnered with the Seaport Working Group to release Seaport 1.6. The firm said the initiative would usher in a new era for NFT marketplaces within the Ethereum Virtual Machine (EVM) ecosystem.
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- Securitize Enhances Tokenized Asset Liquidity Through Wormhole Integration
- Sep 21, 2024 at 10:50 am
- Real-world-asset (RWA) tokenization infrastructure provider Securitize has chosen Wormhole as its official interoperability provider to facilitate cross-chain
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- Tether (USDT) Supply on the TON Blockchain Crosses $1B, Reaches 5M Weekly Active Users
- Sep 21, 2024 at 10:50 am
- The Open Network (TON), the network tied to Telegram tap games, reached a peak of 5M active weekly users.
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- Tron Blockchain’s Founder, Justin Sun, Is Looking to Pick up a Fight with Ethereum’s Vitalik Buterin
- Sep 21, 2024 at 10:50 am
- This was revealed in a message on X on the evening of September 19. In the tweet, Sun declared: “The atmosphere is so intense; it’s making me want to have a fight with @VitalikButerin at @CryptoFightWeek.”
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- George From Cryptos RUs Predicts Bitcoin Will Hit $250K to $300K by 2025
- Sep 21, 2024 at 10:50 am
- The crypto world is once again buzzing with optimism as Bitcoin edges closer to breaking the $65,000 mark. Driven by strong economic data from the U.S. and rising demand for BTC-spot ETFs, the current market trend has discussions about a massive bull run by 2025. But how high could Bitcoin go in the next cycle?
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- Circle Plans Wall Street HQ Debut as Tether Hires Ex-PayPal Exec
- Sep 21, 2024 at 10:50 am
- Stablecoin issuer Circle is moving forward with its initial public offering (IPO) debut and plans to shift its headquarters to Wall Street in 2025
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- The United States Securities and Exchange Commission (SEC) gave Nasdaq the go-ahead to list and trade shares of options
- Sep 21, 2024 at 10:50 am
- In a Sept. 20 notice, the SEC approved options trading for the iShares Bitcoin Trust under the ticker symbol IBIT on Nasdaq.
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- Declining Usage and Network Activity
- Sep 21, 2024 at 10:50 am
- Recent data from Bitcoin Visuals highlights the stark drop in the Lightning Network's capacity, which reflects a significant decline in user activity.
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- Sky (MakerDAO) to Eliminate All WBTC Exposure over Justin Sun Ties
- Sep 21, 2024 at 10:30 am
- Sky, formerly MakerDAO, will offboard WBTC over Justin Sun ties. This decision follows a governance vote that ended on Thursday, September 19.
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- Cryptocurrency Exchange BingX Announces Withdrawal Services Will Resume on Sept. 21, 2024, for Certain Digital Assets
- Sep 21, 2024 at 10:25 am
- According to the exchange's announcement, withdrawals for Tether's US dollar stablecoin USDT $1.00, Circle's US dollar stablecoin USDC $1.00