The plaintiffs failed to show how Bored Ape Yacht Club and other NFTs represent investment contracts under the SEC's 3-pronged Howey Test. A US judge has dismissed an investor lawsuit against Web3 company Yuga Labs, ruling that the case failed to show non-fungible tokens (NFTs) meet the legal definition of securities.Judge Fernando M. Olguin ruled the plaintiffs did not demonstrate how Bored Ape Yacht Club (BAYC), ApeCoin (APE) or other NFTs sold by Yuga satisfied the three conditions of the Howey test, a standard used by the Securities and Exchange Commission (SEC) to determine whether a transaction qualifies as an investment contract. The lawsuit was originally filed in 2022.Yuba Labs marketed its NFTs as digital collectibles with membership perks to an exclusive club, making them consumables rather than investment contracts, Olguin said. He wrote:The judge also said the plaintiffs failed to show that the Bored Ape Yacht Club and other NFT collections launched by Yuga are a “common enterprise” with the expectation of profits produced by others, adding legal precedent that most digital assets are not securities.Read more The plaintiffs failed to show how Bored Ape Yacht Club and other NFTs represent investment contracts under the SEC's 3-pronged Howey Test. A US judge has dismissed an investor lawsuit against Web3 company Yuga Labs, ruling that the case failed to show non-fungible tokens (NFTs) meet the legal definition of securities.Judge Fernando M. Olguin ruled the plaintiffs did not demonstrate how Bored Ape Yacht Club (BAYC), ApeCoin (APE) or other NFTs sold by Yuga satisfied the three conditions of the Howey test, a standard used by the Securities and Exchange Commission (SEC) to determine whether a transaction qualifies as an investment contract. The lawsuit was originally filed in 2022.Yuba Labs marketed its NFTs as digital collectibles with membership perks to an exclusive club, making them consumables rather than investment contracts, Olguin said. He wrote:The judge also said the plaintiffs failed to show that the Bored Ape Yacht Club and other NFT collections launched by Yuga are a “common enterprise” with the expectation of profits produced by others, adding legal precedent that most digital assets are not securities.Read more
Judge tosses lawsuit against Yuga Labs over failure to satisfy Howey test
The plaintiffs failed to show how Bored Ape Yacht Club and other NFTs represent investment contracts under the SEC's 3-pronged Howey Test.
A US judge has dismissed an investor lawsuit against Web3 company Yuga Labs, ruling that the case failed to show non-fungible tokens (NFTs) meet the legal definition of securities.
Judge Fernando M. Olguin ruled the plaintiffs did not demonstrate how Bored Ape Yacht Club (BAYC), ApeCoin (APE) or other NFTs sold by Yuga satisfied the three conditions of the Howey test, a standard used by the Securities and Exchange Commission (SEC) to determine whether a transaction qualifies as an investment contract. The lawsuit was originally filed in 2022.
Yuba Labs marketed its NFTs as digital collectibles with membership perks to an exclusive club, making them consumables rather than investment contracts, Olguin said. He wrote:
The judge also said the plaintiffs failed to show that the Bored Ape Yacht Club and other NFT collections launched by Yuga are a “common enterprise” with the expectation of profits produced by others, adding legal precedent that most digital assets are not securities.
Read more
Market Opportunity
ApeCoin Price(APE)
$0.1884
$0.1884$0.1884
USD
ApeCoin (APE) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
You May Also Like
The Channel Factories We’ve Been Waiting For
The post The Channel Factories We’ve Been Waiting For appeared on BitcoinEthereumNews.com. Visions of future technology are often prescient about the broad strokes while flubbing the details. The tablets in “2001: A Space Odyssey” do indeed look like iPads, but you never see the astronauts paying for subscriptions or wasting hours on Candy Crush. Channel factories are one vision that arose early in the history of the Lightning Network to address some challenges that Lightning has faced from the beginning. Despite having grown to become Bitcoin’s most successful layer-2 scaling solution, with instant and low-fee payments, Lightning’s scale is limited by its reliance on payment channels. Although Lightning shifts most transactions off-chain, each payment channel still requires an on-chain transaction to open and (usually) another to close. As adoption grows, pressure on the blockchain grows with it. The need for a more scalable approach to managing channels is clear. Channel factories were supposed to meet this need, but where are they? In 2025, subnetworks are emerging that revive the impetus of channel factories with some new details that vastly increase their potential. They are natively interoperable with Lightning and achieve greater scale by allowing a group of participants to open a shared multisig UTXO and create multiple bilateral channels, which reduces the number of on-chain transactions and improves capital efficiency. Achieving greater scale by reducing complexity, Ark and Spark perform the same function as traditional channel factories with new designs and additional capabilities based on shared UTXOs. Channel Factories 101 Channel factories have been around since the inception of Lightning. A factory is a multiparty contract where multiple users (not just two, as in a Dryja-Poon channel) cooperatively lock funds in a single multisig UTXO. They can open, close and update channels off-chain without updating the blockchain for each operation. Only when participants leave or the factory dissolves is an on-chain transaction…
Share
BitcoinEthereumNews2025/09/18 00:09
Zwitserse bankgigant UBS wil crypto beleggen mogelijk maken
De grootste vermogensbeheerder ter wereld, UBS, maakt zich op om een stap te zetten richting crypto. Volgens bronnen binnen de bank kijkt het Zwitserse concern
Share
Coinstats2026/01/24 02:48
Trump Nears Decision on New Federal Reserve Chair
The post Trump Nears Decision on New Federal Reserve Chair appeared on BitcoinEthereumNews.com. Key Points: Trump nears decision on Federal Reserve Chair, evaluating
Share
BitcoinEthereumNews2026/01/24 02:53