Nfts
Dolce & Gabbana sued for NFT sale
Dolce & Gabbana was reportedly sued by a customer who said he spent $6,000 on non-fungible tokens (NFTs) offered by the company, only to have them arrive late and without the promised benefits.
The plaintiff brought the case on behalf of a proposed group of people with similar experiences, Bloomberg reported Thursday (May 16).
Dolce & Gabbana did not immediately respond to PYMNTS’ request for comment.
The suit alleges that the company said the NFTs would come with outfits to wear in the metaverse and provide access to digital rewards, physical products and exclusive events, according to the report.
It further alleges that the outfits arrived 20 days late, could only be used on a Metaverse platform “with virtually no users” and could not be used for another 11 days after their receipt because Dolce & Gabbana had not been able to use them. “I have not received approval from the Metaverse platform,” the report states.
The NFTs lost 97% of their value, meaning the plaintiff lost $5,800, according to the report.
The suit was filed Thursday in Manhattan federal court, according to the report.
It was reported in January that NFT sales fell 63% to $8.7 billion in 2023, after being a defining feature of the 2021 crypto bull market.
In January, Stoppage of play announced that it is leaving the NFT arena and will end its NFT Marketplace “due to continued regulatory uncertainty in the crypto space.”
The company unveiled its NFT marketplace in July 2022, saying it would allow gamers, creators and collectors to buy, sell and trade digital art collectibles.
GameStop also ended its support for a digital asset wallet in November.
In August, the Security and Exchange Commission (SEC) announced that it had filed a complaint against Impact theoryalleging that the company had made an unregistered offering of crypto asset securities in the form of so-called NFTs, thereby raising $30 million.
The SEC said Impact Theory neither admitted nor denied its findings, but agreed to an order requiring it to “pay a combined total of more than $6.1 million in disgorgement, prejudgment interest and a civil penalty.” “.
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