Unravelling the Secret Investigation of Dapper Labs by the SEC

Dapper Labs, the company behind popular NFT projects such as NBA Top Shot and CryptoKitties, has been making headlines lately. But not for their success in the NFT market, rather for an investigation conducted by the U.S Securities and Exchange Commission (SEC). 

While the case was closed in September 2023, many are still curious about what exactly happened. In this article, we will dive into the details of the investigation and its implications for Dapper Labs and the NFT market as a whole.

The SEC’s “Case Closing Report”

A document known as the “Case Closing Report” was obtained by Fortune, revealing the SEC’s investigation into Dapper Labs. The report, signed by David Hirsch, the head of the SEC’s Crypto Asset and Cyber Unit, provided little information about the reasons for the investigation or its closure. However, it is speculated that Dapper Labs was aware of the investigation.

The case against Dapper Labs is not the first time the SEC has been involved in the NFT market. In fact, they recently settled with two other NFT ventures, Impact Theory and Stoner Cats, for alleged violations of federal securities laws. This marks the SEC’s first actions against the NFT market.

Implications for Dapper Labs

Aside from the SEC investigation, Dapper Labs is also facing a separate legal challenge through a class-action lawsuit. The lawsuit claims that NBA Top Shot Moments, sold as NFTs, are unregistered securities. In February 2023, a federal judge refused to dismiss the case, indicating that there may be validity to the claim.

The SEC’s investigation and the class-action lawsuit against Dapper Labs have raised concerns about the legality of NFTs. As a relatively new market, there is still much uncertainty surrounding NFTs and their regulation. The SEC’s involvement in the NFT space could lead to stricter regulations for companies like Dapper Labs, which may affect their operations and profitability.

On the other hand, the NFT market has also seen significant growth in recent years, with more and more people buying and selling digital assets. This has attracted attention from investors, celebrities, and even traditional institutions. However, the involvement of regulatory bodies like the SEC could potentially hinder this growth.


In conclusion, the outcome of the SEC’s case against Dapper Labs may have been favorable, but the implications of the investigation and ongoing class-action lawsuit are yet to be seen. As the NFT market continues to evolve, it is crucial for companies like Dapper Labs to stay informed about regulations and compliance in order to prevent any potential legal issues. Only time will tell how these events will shape the future of the NFT market and its players.  

Featured Image: Depositphotos


The information provided on this blog is for informational purposes only and does not constitute financial, legal, or investment advice. The views and opinions expressed in the articles are those of the authors and do not necessarily reflect the official policy or position of NFT News Today.