Court Rules Bored Ape NFTs Are Not Securities
A federal judge in the United States has dismissed a high profile investor lawsuit that accused Yuga Labs of selling unregistered securities through Bored Ape Yacht Club non fungible tokens and ApeCoin, according to Bitcoinist. US District Judge Fernando M. Olguin ruled that the plaintiffs failed to meet the legal requirements of an investment contract under the Howey Test.
The litigation, which originated in 2022, sought to establish that the digital collectibles qualified as securities. However, the court found that buyers failed to demonstrate a shared enterprise tied directly to the efforts of Yuga Labs or that they were promised returns stemming primarily from company work. The decision emphasized that many sales were marketed as collectibles and membership perks rather than investment opportunities.
Despite the dismissal, legal experts noted that the ruling does not serve as a universal safe harbor for the broader digital asset sector. Projects that feature revenue sharing, profit splits, or explicit investment promotions may still face regulatory exposure. The Securities and Exchange Commission continues to monitor the space closely through separate enforcement actions.
Market participants and creators welcomed the decision as a notable legal victory for the NFT industry, though courts continue to evaluate each case based on its specific factual circumstances. Yuga Labs has experienced mixed outcomes in other legal matters, including a separate trademark dispute sent back for retrial by an appeals court.
Based on reporting by bitcoinist.com.
