OpenSea Users File Class-Action Lawsuit Over Alleged Sale of Unregistered Securities
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
Two users of the prominent non-fungible token (NFT) marketplace OpenSea have filed a class-action lawsuit in a U.S. federal court, accusing the platform of selling unregistered securities contracts.
The plaintiffs, Anthony Shnayderman and Itai Bronshtein, initiated the suit on September 19 in Florida, according to a report by Law.com.
The plaintiffs argue that certain NFTs purchased through OpenSea, including those from the once sought-after Bored Ape Yacht Club collection, have become worthless due to their purportedly illegal nature.
Central to their case is OpenSea’s recent disclosure of receiving a Wells notice from the U.S. Securities and Exchange Commission (SEC).
A Wells notice is a formal notification indicating that the SEC has concluded an investigation and may bring an enforcement action against the recipient.
News of @Opensea receiving a Wells Notice shows plain and simple that the current SEC’s crusade against the crypto industry continues unabated. This is in contrast to what Vice President Harris said two weeks ago announcing her economic agenda: pic.twitter.com/cafsHJ6DhU
Shnayderman and Bronshtein contend that this notice implies OpenSea may be held accountable for facilitating the exchange of unregistered securities, which they believe includes certain NFTs sold on the platform.
The lawsuit draws parallels to previous SEC actions against NFT projects such as Stoner Cats 2 and Impact Theory, both of which were charged with selling unregistered securities.
The plaintiffs argue that the NFTs they purchased meet the
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