Dapper Labs, the developer of NBA Top Shot, is being sued for allegedly selling the non-fungible tokens (NFTs) as unregistered securities.

NBA Top Shot is a blockchain-based digital collectibles platform that allows users to buy, sell and trade video highlights, called moments, as NFTs. Demand for the product has exploded this year, and Dapper is reportedly raising new funding at a $7.5 billion valuation.

https://www.coindesk.com/michael-jordan-joins-305m-investment-in-firm-behind-nba-top-shot

https://www.coindesk.com/dapper-labs-sued-on-allegations-nba-top-shot-moments-are-unregistered-securities