Dapper Labs Under SEC’s Secret Scrutiny

The Securities and Exchange Commission (SEC) of the United States secretly investigated Dapper Labs, known for its NFT initiatives, concluding its probe on September 29, 2023. Fortune, an American business publication, disclosed this based on an internal agency document.

The commission's final report was a mere page long, with no details disclosed about the investigation's start, reasons, or the basis for its closure. In response to an official journalistic inquiry, the SEC neither confirmed nor denied the existence of the investigation or report.

A spokesperson from Dapper Labs expressed that the SEC had not previously contacted them, viewing the case's conclusion as a positive sign. Nonetheless, Arthur Jacoby, a former SEC prosecutor, warned that celebration might be premature, indicating the possibility of the investigation being reinstated in the future.

Dapper Labs, already facing legal challenges with its NBA Top Shot Moments, is an established name in the NFT realm. The company initially made headlines with CryptoKitties in 2017, a game allowing players to exchange virtual cats, which significantly boosted its investment appeal.