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NBA Top Shot developer Dapper Labs has been sued for allegedly selling NFT as an unregistered security

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The charges are based on the "personal perception" of the lead plaintiff, Jeeun Friel.

NBA Top Shot developer Dapper Labs has been sued for allegedly selling NFT as an unregistered security, Coindesk reported. The charges are based on the "personal perception" of the lead plaintiff, Jeeun Friel, according to a document filed Wednesday in the New York Supreme Court.

According to the filing, the NBA Top Shot should be considered a security because its value will increase with the success of the overall project, so Dapper Labs should register with the SEC, which Dapper Labs did not do. Dapper Labs also allegedly used its control of the NBA Top Shot to prevent investors from withdrawing money "for months on end" to ensure money remained on the platform to "prop up" its value.

Dapper Labs has 30 days to respond to the subpoena. Dapper Labs declined to comment for this story.