Key facts
- BIG3 NFT purchasers have filed a class action lawsuit against the league.
- The lawsuit alleges the league engaged in "deceptive, fraudulent, and illegal marketing" and sold unregistered securities.
- NFT buyers claim they were promised ownership rights, including team management decisions and a share of future team sales, which they say were not honored.
- BIG3 sold four teams for approximately $40 million in 2024, with a portion allegedly owed to NFT holders.
- The league is preparing to go public via a SPAC merger valued at $290 million.
Owners of non-fungible tokens (NFTs) purchased for Ice Cube's BIG3 basketball league have filed a class action lawsuit in California, alleging the league made unfulfilled promises regarding ownership rights and financial participation. The suit, which claims the NFTs were unregistered securities, asserts that buyers who paid up to $25,000 each for 'Fire' tier NFTs and $5,000 for 'Gold' tier NFTs were promised benefits like team management input and a share of future team sales, which they claim lasted less than three years.
Plaintiffs' attorney Joseph Sakai stated that the case centers on promises made to investors who are also loyal fans, and that the league has relegated them from owners to common ticket holders. The lawsuit highlights that BIG3 sold four teams for approximately $40 million in 2024, with a portion allegedly owed to the NFT holders who were early private investors. The league has reportedly countered that the plaintiffs are pursuing a public nuisance suit despite contractual agreements for confidential arbitration.
The BIG3 league, which recently began its ninth season, is also preparing to go public through a merger with a special purpose acquisition company (SPAC) that would value it at around $290 million. Attorneys for the plaintiffs indicated they plan to amend the lawsuit in response to this news.