📣 OpenSea Accused of Violating Securities Laws
posted 23 Sept 2024
Anthony Shnayderman and Itai Bronshtein filed a class-action lawsuit against the NFT platform OpenSea, alleging that it has engaged in trading unregistered securities. The plaintiffs, who purchased several non-fungible tokens, including those from the Bored Ape Yacht Club collection, claim these assets have lost their value due to their illegal status.
In their lawsuit, they point to a recent Wells notice from the U.S. Securities and Exchange Commission (SEC), indicating that the platform is under investigation. They also referenced the SEC's successful legal actions against other NFT projects, such as Stoner Cats 2 and Impact Theory.
The plaintiffs argue that they conducted the Howey Test and determined that the NFTs they purchased qualify as investment contracts, as they were marketed with an expectation of profit. They further contend that OpenSea bears responsibility for allowing these projects to operate on its platform, despite its policies.
Additionally, the lawsuit accuses OpenSea of profiting unlawfully from the sale of unregistered securities. The Moskowitz Law Firm, representing the plaintiffs, has expressed a willingness to work with OpenSea to resolve the dispute and assist with regulatory compliance.
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