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Judge Rules: The 3 Biggest NFT Lawsuit Cases!

By March 3, 2023June 22nd, 2023NFTs

NFT Lawsuit Cases - AIO BotNon-fungible token collections and projects have become more and more popular in the past two years. However, the concept of the metaverse and web3 technology is still relatively new. So, this means that there are a lot of blurry lines and vagueness. Especially when it comes to the rules and regulations governing the world of NFTs. Whether you’re in the real world or the virtual world, there will always be legal issues that need settling. And so, this brings us to the matter of NFT lawsuit cases!

When it comes to actual government regulations for non-fungible tokens, there aren’t many. We’re all still trying to figure out how to make things work. But, at the same time, we still want the rights of creators, users, and brands to be protected. The only official things we have for NFTs are NFT standards for the tokens and some vague guidelines for NFT taxes

However, you should know that NFT lawsuit cases probably don’t include a lot of NFT rug pulls. And, probably not things related to NFT security. But, the biggest concerns when it comes to non-fungible tokens are definitely copyright and infringement issues! And that’s where these suits come into play!


Before we get into some of the most prominent NFT lawsuit cases, let’s give you some case:

  • One of the primary legal issues associated with NFTs is ownership. When someone buys an NFT, they own the NFT but not the actual digital asset – especially if it’s copyright!
  • Another issue is fraud. Instances of fraud where scammers create fake NFTs and sell them to unsuspecting buyers gained a lot of heat. This has led to lawsuits by buyers who have lost money as a result of buying fake NFTs. Click here for a guide on how to spot fake NFTs!
  • Additionally, there have been cases where artists or creators have sued over the unauthorized use of their work in NFTs. Like, if an artist creates a digital artwork and someone else turns it into NFT without permission – aka, copyright infringement.

High-Profile NFT Lawsuit Cases

NFT Lawsuit - AIO Bot#1 MORONS

First, one of the most high-profile NFT lawsuit cases to date includes Trevor Jones, and the Banksy-inspired collection called “Morons”. The NFT sold for $400,000, but Banksy’s representatives claimed that the sale infringed on Banksy’s intellectual property rights. Jones and the buyer of the NFT have since filed a lawsuit against Banksy, for a judgment that the NFT sale was legal and did not infringe on Banksy’s rights.

#2 Mars House

Another NFT lawsuit involves the artist Krista Kim, who created an NFT artwork called “Mars House” that sold for $500,000. The buyer, a crypto investor named Metakovan, has since claimed that he owns the copyright to the artwork and that Kim’s sale of the NFT was unauthorized.

Kim has countered that she retained ownership of the copyright and only licensed the rights to the NFT buyer.

#3 NBA Top Shot

Recently, an NFT lawsuit alleging that the NBA Top Shot NFT is unregistered security. A United States District Court judge denied Dapper Lab’s request to dismiss the suit. They determined that the NBA Top Shot NFT collectibles platform plausibly meets the conditions of security. The collection belongs to the FLOW blockchain which is a private blockchain – controlled by the community.

Another one of the most recent NFT lawsuit cases includes the Hermes MetaBirkins bag. This lawsuit in particular set the path for the future development of legal issues and regulations. It’s still unclear how courts will decide on these issues. But, we assume there will be a lot more legal disputes related to NFTs in the future.

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