Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Cryptocurrencies

SEC quietly investigated and closed case against altcoin FLOW founder Dapper Labs in September

Source Fxstreet

Fortune obtained a document revealing the SEC investigated FLOW's Dapper Labs and closed the case in September.
The document didn't reveal any reason for the investigation or its closure.
Dapper Labs spokesperson says the company is unaware of the investigation.

Flow (FLOW) cryptocurrency received attention on Monday after Fortune obtained a document revealing the Securities & Exchange Commission (SEC) closed an investigation on its founding company, Dapper Labs, which is also responsible for developing NBA Top Shot and Crypto Kitties NFTs.

Read more: SEC serves DeFi giant Uniswap with Wells notice as project vows to fight

FLOW's price stagnancy

FLOW has been trading in the red for the past month despite a general market rally that saw many altcoins recording impressive gains. The bearish price movement is owing to the declining sales Dapper Labs has been facing since 2022.

Dapper Labs, which burst into the limelight with the Crypto Kitties NFT game and a follow-up with the NBA Top Shot NFT trading marketplace, quickly garnered massive attention within the crypto market. It fueled the NFT frenzy of 2021, launching the FLOW token, and its NFT monthly sales skyrocketed to $226 million in February 2021, according to CryptoSlam.

Also read: XRP price drops below psychologically important level while Ripple CLO weighs evidence presented by SEC

However, Dapper Labs' NFT sales plummeted following the crypto market crash of 2022.

SEC closes Dapper Labs investigation

In an internal document Fortune obtained, the SEC closed an investigation against Dapper Labs on September 29, 2023. Fortune said that the "Case Closing Report" was terminated by David Hirsch, SEC's head of Crypto Asset & Cyber Unit. The document didn't reveal reasons for the investigation, when it began or why the SEC closed it. A Dapper Labs spokesperson told Fortune that the company wasn't aware of the Investigation as the SEC never contacted them.

Read more: Tron Foundation seeks the dismissal of SEC lawsuit versus Justin Sun and his companies

Dapper Labs and its CEO Roham Gharegozlu had also faced legal action earlier when investors argued that the company's NBA Top Shot NFTs were securities and should have been registered with regulators. In February 2023, the judge presiding over the case refused to dismiss the suit, highlighting that the securities claim had merit.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Understanding the first crypto market crash of 2024 and what to expect next The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.

Author FXStreet

Jan 04, Thu

The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.

Natural Gas sinks to pivotal level as China’s demand slumps Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It

Author FXStreet

Jul 01, Mon

Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It

Ethereum ETFs Debut: BlackRock Reigns With $260M Inflows, Grayscale Bleeds Nine spot Ethereum ETFs commenced trading on the US stock market on Tuesday, marking a pivotal moment for the crypto industry following the Securities and Exchange Commission’s (SEC) green light on Monday.

Author NewsBTC

Jul 25, Thu

Nine spot Ethereum ETFs commenced trading on the US stock market on Tuesday, marking a pivotal moment for the crypto industry following the Securities and Exchange Commission’s (SEC) green light on Monday.

Sooner Fed rate cuts may not save economy from recession Investing.com -- Sooner Federal Reserve rate cuts may not be enough to stop the central bank from falling behind the curve, throwing the economy and the current stock bull market into a wreck. The ris

Author Investing.com

Yesterday 01: 13

Investing.com -- Sooner Federal Reserve rate cuts may not be enough to stop the central bank from falling behind the curve, throwing the economy and the current stock bull market into a wreck. The ris

Ethereum Whales Rapidly Accumulate ETH Amid Price Decline Ethereum whales have been busy in the market, as on-chain data shows that these investors have been heavily accumulating the second-largest crypto token by market cap.

Author NewsBTC

Yesterday 01: 17

Ethereum whales have been busy in the market, as on-chain data shows that these investors have been heavily accumulating the second-largest crypto token by market cap.

Popular Symbols