OpenSea, a Non-Fungible Token (NFT) trading platform, is accused by its users of selling unregistered securities contracts.

Two OpenSea users have filed a class-action lawsuit in a federal court in Florida, accusing the non-fungible token (NFT) trading platform OpenSea of selling unregistered securities contracts. Plaintiffs Anthony Shnayderman and Itai Bronshtein claim that the NFTs they purchased on OpenSea, including the highly priced Bored Ape Yacht Club series, are ‘worthless’ due to their ‘illegal nature’. The plaintiffs cite last month’s Wells notice from the U.S. Securities and Exchange Commission (SEC) disclosed by OpenSea as evidence, believing it indicates that OpenSea may face legal liability for facilitating unregistered securities transactions. The lawsuit also mentions SEC’s previous successful enforcement actions against NFT projects such as Stoner Cats 2 and Impact Theory, where the SEC determined that these NFTs were sold as unregistered securities. The plaintiffs claim that the NFTs on OpenSea platform meet the definition of investment contracts under U.S. securities laws, according to the Howey test. They argue that these NFTs constitute investments in a common enterprise with a reasonable expectation of profits derived from the efforts of others. The plaintiffs accuse OpenSea’s NFT listings of being deceptive and misleading, alleging that they purchased ‘worthless and illegal unregistered securities’. They claim that OpenSea violated user warranties and failed to effectively regulate unregistered securities on the platform. OpenSea has not yet publicly responded to this lawsuit. (Cointelegraph)