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

Nvidia Earnings Approach: Can It Drive a Nasdaq Rebound? What Should Investors Watch Most?On May 20, ET, NVIDIA ( NVDA )'s first-quarter fiscal 2026 earnings report, to be released after the market close, has become the market focus. The options market has already reacted; bas

Author TradingKey

12 hours ago

On May 20, ET, NVIDIA ( NVDA )'s first-quarter fiscal 2026 earnings report, to be released after the market close, has become the market focus. The options market has already reacted; bas

Gold Prices Fall Below Key $4,500 Mark, US Treasury Yields Rise for Seventh Day, Gold May Fall to $4,100 On Tuesday (May 19), gold ( XAUUSD) closed at $4,481.89. The price confirmed a break below $4,500, further opening up the downside. On Wednesday, gold extended its downward trend from the

Author TradingKey

19 hours ago

On Tuesday (May 19), gold ( XAUUSD) closed at $4,481.89. The price confirmed a break below $4,500, further opening up the downside. On Wednesday, gold extended its downward trend from the

Gold falls below $4,500 on rising global rate hike bets Gold price (XAU/USD) faces some selling pressure near $4,480 during the early Asian session on Wednesday. The precious metal drops to its lowest since March 30 as persistent inflation fears keep interest rate hike expectations and Treasury yields high.

Author FXStreet

21 hours ago

Gold price (XAU/USD) faces some selling pressure near $4,480 during the early Asian session on Wednesday. The precious metal drops to its lowest since March 30 as persistent inflation fears keep interest rate hike expectations and Treasury yields high.

Bitcoin Price Forecast: BTC battles at key technical zone amid mixed flow signals Bitcoin (BTC) steadies around the key technical support on Tuesday after its recent correction. The Crypto King’s next directional move could hinge on this key technical zone.

Author FXStreet

Yesterday 10: 07

Bitcoin (BTC) steadies around the key technical support on Tuesday after its recent correction. The Crypto King’s next directional move could hinge on this key technical zone.

WTI declines below $102.00 after Trump says he called off Iran attacks West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $101.85 during the early Asian trading hours on Tuesday. The WTI price declines after US President Donald Trump said he was holding off a military attack on Iran planned for Tuesday at the request of Gulf states.

Author FXStreet

Yesterday 01: 17

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $101.85 during the early Asian trading hours on Tuesday. The WTI price declines after US President Donald Trump said he was holding off a military attack on Iran planned for Tuesday at the request of Gulf states.

Popular Symbols