DraftKings has agreed to a $10 million settlement in response to a class-action lawsuit that accused the company of violating state and federal securities laws with its sale of non-fungible tokens (NFTs). The lawsuit argued that the NFTs should have been registered as securities. The settlement aims to compensate individuals who purchased, held, or sold DraftKings NFTs during a specific period. This case reflects a wider trend of scrutiny over the classification of NFTs under securities law. A related case ruled that DraftKings' NFTs could be considered investment contracts, satisfying criteria of the Howey test. This highlights the evolving legal landscape surrounding NFTs and the need for companies to reevaluate their practices and compliance strategies.



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