Investors allege the league failed to deliver ownership rights and revenue shares promised with high-value NFT purchases.
Owners of BIG3 NFTs have sued the 3-on-3 basketball league, alleging unfulfilled promises tied to tokens sold for up to $25,000 each. The lawsuit claims buyers were guaranteed team ownership stakes, revenue shares, and other benefits that were not delivered.
The suit, filed in California Superior Court, targets the league’s 2022 NFT sale, which included “Fire” tokens priced at $25,000 and “Gold” tokens at $5,000. Plaintiffs argue the league marketed the tokens as unregistered securities, with rights lasting indefinitely, but benefits were revoked within three years.
Attorneys for the plaintiffs stated investors were misled into believing they would participate in team management and financial gains from future sales. The league is preparing for a public listing, adding urgency to the dispute.