It’s only been a month since Yuga Labs cleared out the nazi allegations, and sued the claimer for scamming people by creating a Bored Ape rip-off. The BAYC creator is once again caught in the web of yet another scandal.
This time, the Law firm Scott+Scot is preparing a class action lawsuit against Yuga Labs for wrongly promoting BAYC and its native token, ApeCoin, as securities with returns but have resulted in a loss for the past three months.
The law firm hasn’t filed one yet as it is gathering pieces of evidence and plaintiffs who can testify for the losses from April to June.
If the lawsuit does get accepted by the SEC, many experts believe this might put the whole NFT industry and SEC in a complex.
If NFTs were accepted as securities that work as shares for the company, in this case, Yuga Labs will be guilty of not providing the necessary disclosure and registration obligations for offering securities.
Furthermore, it will open “a huge can of worms” to regulate other NFT projects as well, which it has been continuously avoiding.
“You know when something is a security? When the SEC decides it wants to regulate it—then it becomes a security,” said Brian Fyre from the University of Kentucky. “The real question is, does the SEC want to regulate this particular market? And the reality is, the SEC does not want to regulate the art market.”
Will the lawsuit be successful or dismissed? The answer will come once Scott+Scot files it officially.