Tag: NFTs

SEC Charges LA-Based Media and Entertainment Co. Impact Theory for Unregistered Offering of NFTs

The Securities and Exchange Commission today charged Impact Theory, LLC, a media and entertainment company headquartered in Los Angeles, with conducting an unregistered offering of crypto asset securities in the form of purported non-fungible tokens (NFTs). Impact Theory raised approximately $30 million from hundreds of investors, including investors across the United States, through the offering. According to the SEC’s order,…

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Are NFTs Securities? – Bloomberg

I like to explain crypto initial coin offerings by saying that “they’re like if the Wright Brothers sold air miles to finance inventing the airplane,” so here’s another old-timey analogy for non-fungible token offerings. Imagine that one day in the boom times of the 1920s a young animator named Walter Disney shows up at the stock market looking to raise…

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Buyers of Bored Ape NFTs sue after digital apes turn out to be bad investment | Ars Technica

The Sotheby’s auction house has been named as a defendant in a lawsuit filed by investors who regret buying Bored Ape Yacht Club NFTs that sold for highly inflated prices during the NFT craze in 2021. A Sotheby’s auction duped investors by giving the Bored Ape NFTs “an air of legitimacy… to generate investors’ interest and hype around the Bored…

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Ex-OpenSea Employee Sentenced to Three Months in First NFT Insider-Trading Case – WSJ

Nathaniel Chastain, 33 years old, was convicted of wire fraud and money laundering in May. Prosecutors said that Chastain used confidential information to trade on nonfungible tokens before OpenSea advertised them on its home page. Before handing down the sentence, which also included a $50,000 fine and three months of home confinement, U.S. District Judge Jesse Furman said that determining…

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Ex-OpenSea manager’s trial kicks off in first NFT insider trading case | Reuters

U.S. prosecutors will square off this week against a former employee of OpenSea, the world’s largest marketplace for non-fungible tokens (NFTs), whom they accuse of insider trading. The charges against Nathaniel Chastain, a former OpenSea product manager, were the first in a series of high-profile cases related to digital assets launched by the Manhattan U.S. Attorney’s office last year. It…

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In NFT insider trading case, judge says secret website plans can be basis for wire fraud | Reuters

A onetime product manager for digital art marketplace OpenSea got some bad news this week from a Manhattan federal judge, days ahead of trial in a novel insider trading case against him. A Manhattan federal judge has rebuffed defense arguments from Nathaniel Chastain that the prosecution is doomed because OpenSea’s confidential plans to feature new non-fungible tokens, or NFTs, on…

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NFTs Used to Serve Complaint | BakerHostetler

According to a recent report, a Florida federal judge entered a default judgment in favor of a party who served “complaints to more than a dozen unidentified suspects through a non-fungible token.” According to the report, it is “possible to track the NFT when opened.” An attorney for the plaintiff in the case said allowing service through NFTs “is going…

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