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Oct. 2, 2025

Court rules Yuga NFTs are collectibles, not securities in fraud case

A federal judge dismissed fraud claims against Yuga Labs and celebrities, finding its NFTs were marketed as collectibles, not securities. Plaintiffs may refile by Oct. 10 with amended claims.

A federal judge in Los Angeles dismissed claims that Yuga Labs - the creator of a prominent non-fungible token collection - and several celebrity promoters committed securities fraud, ruling the company's NFTs were sold as collectibles rather than investments.

In an order Tuesday, U.S. District Judge Fernando M. Olguin found the plaintiff investors failed to meet the legal test showing the NFTs were marketed as investment contracts, a requirement for securities fraud claims. <...

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