DraftKings Closes NFT Case with $10 Million Payout After Investor Losses – BitRss

DraftKings, a sports betting and daily fantasy sports (DFS) company, has reached a $10 million settlement to resolve a lawsuit over its non-fungible token (NFT ($0.00)) sales, which investors claimed were unregistered securities.

The case, led by Justin Dufoe, was filed in March 2023 after he allegedly lost $14,000 from trading DraftKings NFTs. The lawsuit accused the company of offering these digital assets as investment contracts without proper registration under US law.

It also named co-founders Jason Robins and Matt Kalish, along with former finance chief Jason Park, as defendants.