In an emerging trend within the digital assets law arena, non-fungible tokens (NFTs) may be underpinning the next wave of lawsuits seeking their classification as a security.
Miami attorney Adam Moscowitz, from the Moscowitz Law Firm, has expanded on a class action against NBA star Shaquille O’Neal and entities under Astrals LLC. The lawsuit centres on various securities violations, including the offer and sale of unregistered securities such as Galaxy tokens and NFTs created for the Astrals Project, which O’Neal promoted.
In court documents, Lee Reiners, a professor at Duke Law School, argued that styling this investment as an NFT or governance token doesn’t change the true nature of the Astrals’ NFT collection as unregistered securities.
For further information on this evolving legal landscape, please visit the original article that discusses these issues in-depth.