OpenSea users have filed a proposed class-action lawsuit against the popular NFT marketplace, alleging that the platform sold unregistered securities. The plaintiffs argue that certain NFTs listed on OpenSea are investment contracts that should have been registered with the Securities and Exchange Commission (SEC).
The lawsuit, filed in the Southern District of New York, claims that OpenSea’s founders knew or should have known that many of the NFTs sold on their platform were securities. The plaintiffs allege that OpenSea intentionally avoided registering these NFTs as securities to avoid regulatory oversight and to profit from their sale.
The complaint cites several examples of NFTs that it believes are securities, including those associated with real estate, sports teams, and other tangible assets. The plaintiffs argue that these NFTs offer investors the expectation of profits derived solely from the efforts of others, a key characteristic of a security under U.S. securities law.
OpenSea has not yet responded to the lawsuit. However, the case could have significant implications for the NFT market, which has seen explosive growth in recent years. If the court finds that certain NFTs are securities, it could subject OpenSea and other NFT marketplaces to increased regulatory scrutiny and potential liability.
