NFTs
Dolce & Gabbana sued over 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 for them to arrive late and without the promised benefits.
The plaintiff brought the case on behalf of a proposed class of people who had similar experiences, Bloomberg reported Thursday (May 16).
Dolce & Gabbana did not immediately respond to PYMNTS’ request for comment.
The lawsuit alleges that the company said the NFTs would come with clothing to wear in the metaverse and provide access to digital rewards, physical products and exclusive events, according to the report.
It further claims that the clothes arrived 20 days late, that they could only be worn on a metaverse platform “with almost no users” and that they could not be worn for another 11 days after they were received because Dolce & Gabbana did not have them. I have not received approval from the metaverse platform, the report said.
The NFTs lost 97% of their value, meaning the plaintiff lost $5,800, the lawsuit alleges, according to the report.
The lawsuit 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 cryptocurrency bull market.
In January, GameStop announced that it was exiting the NFT arena and would end its NFT Market “due to the continued regulatory uncertainty of the crypto space.”
The company revealed 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 support for a digital asset wallet in November.
In August, the Security and Exchange Commission (SEC) announced that it has filed charges against Impact Theoryalleging that the company made an unregistered offering of crypto asset securities in the form of purported NFTs, raising $30 million in the process.
The SEC said Impact Theory did not admit or deny its findings, but agreed to an order that required it “to pay a combined total of more than $6.1 million in disgorgement, prejudgment interest, and a civil penalty.” .
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