DraftKings settles a $10M class action lawsuit alleging its NFTs violated Federal Securities Law, covering legal fees and user compensation.DraftKings has agreed to a $10 million settlement over allegations that its NFTs were unregistered securities, marking a significant moment in the intersection of digital assets and securities law.Background of the LawsuitIn 2023, DraftKings faced a class action lawsuit alleging that its NFTs, specifically those offered through the DraftKings Reignmakers platform, were unregistered securities. The lawsuit claimed that these digital assets should have been registered with the SEC, as they were marketed and sold as investment opportunities.The Settlement DetailsThe $10 million settlement will cover legal fees, settlement costs, and provide compensation to users who purchased the NFTs. This decision comes after DraftKings' attempt to dismiss the case was denied by the court, leading to the closure of its NFT fantasy sports offering.Implications for the NFT MarketThis settlement could set a precedent for how NFTs are regulated in the future, particularly in how they are classified under securities law. It highlights the ongoing challenges and legal uncertainties facing the rapidly evolving digital asset market. https://redrobot.online/2025/03/draftkings-agrees-to-settle-nft-class-action-suit-for-10m/