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DraftKings is going to pay around 10,000,000 USD to a customer as a result of a lawsuit over their NFT tokens dropped in 2021. According to the lawsuit documents, the company sold these collectibles without properly registering them. This caused customers losses.
Justin Dufoe, one of the token holders, sued the platform for losing 14,000 USD after selling these NFTs. The company needs to pay the corresponding amount with a compensation on the top to all buyers who lost money. Justin claimed that DraftKing’s collectibles were not following the rules of the safety of investors.
While the deal needs an approval from the court, DraftKings has already agreed to pay back the funds to the investors. The shutdown of its NFTs last year has caused some events of losses and lawsuits against the platform. However, it is a sign to focus on the main product for DraftKings.
