Bored Ape NFTs: Court Says They’re Not Securities 🐒💰

A US federal judge, with the flair of a seasoned chess grandmaster, swept aside a high-profile investor lawsuit, declaring that Yuga Labs’ Bored Ape Yacht Club NFTs were not securities. A legal tempest in a teacup, perhaps, but the monkeys are still rich. 🐒💸

The decision, penned by Judge Fernando M. Olguin, found the plaintiffs’ case as flimsy as a house of cards in a hurricane. The judge, ever the stickler for detail, concluded the plaintiffs failed to meet the Howey Test’s three prongs-like trying to solve a Rubik’s Cube with one hand. 🧩💥

The suit, dating back to 2022, aimed to force a legal verdict that the tokens were securities. The court, however, dismissed it with the grace of a bored aristocrat. A case of “not my circus, not my monkeys.” 🐒🎪

Judge Found Howey Test Unmet

According to reports, the judge ruled the plaintiffs’ claims were as thin as a gnat’s wing. Buyers, he noted, were not promised returns tied to Yuga’s efforts, but rather a membership card and a collectible. A “collectible,” no less! 🏛️🃏

The judge emphasized that BAYC sales were framed as art, not investment contracts. A clever rebranding, if you will. 🎨💼

Plaintiffs Had Argued For Profit Expectations

The investors, ever the optimists, claimed market chatter about trading and rare traits implied profit expectations. The court, however, saw these as the delusions of a gambler at a roulette table. 🎰💸

The ruling noted that purchasers’ fortunes were not directly tied to Yuga’s future actions. A narrow view, indeed, but one that left the plaintiffs with nothing but a hollow victory. 🧠💥

Regulators Still Watchful

Reports say the SEC, that ever-vigilant watchdog, has taken enforcement steps in other NFT cases. A regulatory tightrope walk, if you will. 🕰️⚖️

Historical actions included projects with revenue sharing or paid promotions. Courts, as always, are as consistent as a pendulum in a storm. ⚖️🌀

This uncertainty means creators and platforms may still face legal exposure, like a squirrel in a hurricane. 🐿️🌪️

Not A Complete Shield For NFTs

Legal experts warned that this ruling does not grant NFTs a golden ticket. Yuga Labs, for instance, faces other legal battles, including a trademark dispute that saw an $8.8 million judgment overturned. A rollercoaster of justice! 🎢⚖️

The decision offers reassurance, but projects promising revenue sharing or investment-like returns may still attract trouble. A partial shield, not a fortress. 🛡️🛡️

Still, the ruling is a victory for NFT holders, who can now sleep a little easier-until the next legal storm hits. 🌩️😴

2025-10-05 03:44

Judge Found Howey Test Unmet

Plaintiffs Had Argued For Profit Expectations

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