Success results in criticism. Already, the Securities and Exchange Commission is investigating Yuga Labs, a prominent NFT project. However, Scott+Scott, a consumer rights organization, has also announced a new investigation into Yuga Labs, so this is not the only cause for concern.
According to a press statement dated November 23, 2022, the law firm is investigating whether Yuga Labs or “some of its officers, directors, promoters, and business insiders” violated federal securities laws.
In light of this, the law firm has invited everyone who purchased a Yuga Labs asset and suffered a big loss to come forward. Among the most well-known Yuga Lab assets are the Bored Ape Yacht Club, Mutant Ape Yacht Club, and ApeCoin NFTs. All indications indicate that the law firm is preparing for a potential class action lawsuit against the company.
According to the press release, the reduction in the market value of Yuga Labs’ assets appears to be one of the reasons for the lawsuit.
The question of whether or not NFTs and other blockchain assets qualify as securities have been debated for a long time and a court case could be filed on the matter.