The company behind the high-value, celeb-beloved NFT collection may soon find itself on the other side of a serious lawsuit.
According to Decrypt, a New York law firm is organizing a class-action lawsuit against the leader, accusing it of faking the worth of both BAYC NFTs and the company's token by promoting them as growth assets.
Retail investors were left with token that had lost 87 percent from the inflated price high after it was revealed that the promoted growth was dependent on continued promotion.
The firm believes that these assets are securities. The SEC has yet to label NFTs as such, though it has been rattling its sabers, meaning that this new case is only one threat to the crypto industry.
Digital assets have become a topic of discussion in the aftermath of the crash. Some experts don't think that the SEC is prepared to deal with rule-making.
Brian Fyre, a University of Kentucky law professor, told Decrypt that he didn't think the SEC would want to step in. "I think they're going to resist that tooth and nail, because that would force them to regulate all manner of other things that they don't want to be regulating."
The SEC has never been a fan of regulating the art market as a whole. It's possible that the commission names the coin as a security but doesn't do the same for digital art.
Even that outcome is uncertain. It's worth wondering what's stopping Americans from being hurt by these markets.
The SEC doesn't seem to know what it wants to do yet. I think they don't know what's happening.
Yuga Labs was threatened with a possible class-action lawsuit.
Yuga Labs filed a lawsuit against a guy who was minting copies of Bored Apes.
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