In brief
\nOwners of BIG3 NFTs have sued Ice Cube’s 3-on-3 professional basketball league over allegedly unfulfilled promises.
\nNFT purchasers, who paid as much as $25,000 apiece, expected to earn a share of team sales and get other benefits.
\nThe suit alleges they haven’t, and seeks damages and restitution as BIG3 aims to go public via SPAC deal.<\/p>\n
NFT buyers expecting to have some ownership stake in professional 3-on-3 basketball teams from rapper and actor Ice Cube\u2019s BIG3 league have filed a class action lawsuit against the league in the Superior Court of California\u2014challenging the league\u2019s past promises as it prepares to go public.<\/p>\n
The suit, filed last July but first reported by Front Office Sports<\/a> and publicized by attorneys on Tuesday, alleges \u201cdeceptive, fraudulent, and illegal marketing\u201d by the league as part of its \u201coffering and sale of unregistered securities in the form of non-fungible tokens.\u201d\u00a0<\/p>\n \u201cAt its core, this case is about promises made to investors who are also the league\u2019s most loyal fans,” said the attorney for the plaintiffs, Joseph Sakai, in a statement.\u00a0<\/p>\n “Our clients invested substantial sums based on representations that they would receive meaningful ownership rights, including team management decisions, season tickets, and financial participation in future team sales,” Sakai said. “The league promised these rights would last \u2018forever.\u2019 They barely lasted three years.”<\/p>\n \ufeff<\/p>\n The ownership rights the plaintiffs expected were part of perks from the 2022 sale of Ethereum<\/a>-based NFTs from two tiers\u2014\u201dFire\u201d which was sold for $25,000 apiece, and \u201cGold,\u201d which sold for $5,000 each. BIG3 NFT owners were also expected to receive benefits like VIP tickets and the ability to vote on team matters.\u00a0<\/p>\n