The Securities and Exchange Commission (SEC) conducted a confidential investigation into Dapper Labs in September, closing the case in December 2023. The “Case Closing Report” signed by David Hirsch, head of the SEC’s Crypto Asset and Cyber Unit, on Sep. 29, 2023, did not disclose the reasons for the inquiry, its start date, or the factors leading to its conclusion. Dapper Labs, known for projects like NBA Top Shot and CryptoKitties, was under scrutiny.

The specifics of the SEC’s investigation into Dapper Labs and the decision to close the case remain undisclosed. However, it is noted that Dapper Labs is aware of the SEC’s scrutiny. This closure follows the SEC’s settlements with two other NFT ventures, Impact Theory and Stoner Cats, where the Commission took action against unregistered securities offerings.

In a separate legal battle, Dapper Labs faces a class action lawsuit alleging that its NBA Top Shot Moments, sold as NFTs, are unregistered securities. A federal judge’s ruling in February 2023 suggested that the claim had merit, denying a dismissal of the lawsuit.

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