DraftKings Sued by NFT Owners Over ‘Securities Exchange’ (1)

DraftKings Inc. violated securities laws when it sold non-fungible tokens and should give purchasers their money back, an NFT owner says in a suit filed Thursday on behalf of a proposed class.

“The NFTs constitute unregistered securities,” Justin Dufoe says in his complaint, filed in the US District Court for the District of Massachusetts. DraftKings and three of its executives “are operating an unregistered securities exchange,” Dufoe alleges.

He and others spent money on the assets with the expectation that the DraftKings platform “would allow them to realize profits on their NFTs,” he says. But Dufoe sold some NFTs at ...