NBA Top Shot developer Dapper Labs reaches settlement with plaintiffs

After a lengthy litigation process, NBA Top Shot developer Dapper Labs has finally reached a settlement agreement with the plaintiffs regarding the 2021 lawsuit. The lawsuit claimed that Dapper Labs violated U.S. securities laws by selling NFTs as unregistered securities.

The co-founder and CEO of Dapper Labs expressed satisfaction with the settlement outcome, believing it opens a new chapter for the company and the Flow community. This result not only allows Dapper Labs to focus on enhancing user experience but also provides greater innovation space for developers and entrepreneurs on the Flow blockchain.

It is worth noting that this settlement also confirms that Flow is a completely decentralized, permissionless public blockchain that is not controlled by Dapper Labs. Flow will continue to be dedicated to building an ecosystem where users can control their own data, digital assets, and online identities, aimed at fostering the flourishing of digital communities in an open and decentralized environment.

This settlement paves the way for Dapper Labs' continued growth and innovation. Data shows that NBA Top Shot has made significant progress recently: since the beginning of 2024, over 27,000 independent collectors have purchased collectibles; the user conversion rate has significantly increased; and the number of high-value users has grown by 78%. In addition, the Fast Break game launched by Dapper Labs is also well-received by the community, attracting thousands of active players every day.

Other key points of the settlement agreement include:

1. Confirm the decentralized nature of the Flow blockchain.
2. Expand the market reach of NBA Top Shot Moments.
3. Optimize the payment and withdrawal system to enhance user experience.
4. Implement employee compliance training to ensure adherence to U.S. federal securities laws and ethical marketing practices.
5. Transfer the remaining Flow tokens to the Flow Foundation to support the ongoing development and decentralization of the ecosystem.

This settlement not only solidifies Dapper Labs' innovative position in the digital collectibles space but also further clarifies the non-security nature of NBA Top Shot Moments under U.S. federal law, providing a clearer legal environment for the company's future development.