Art Gallery Claims NFT Holders Can’t Sue Over Market Downturn
Eden Gallery, an international art gallery, stated that a group of NFT holders “may have buyers’ remorse, but their losses, if any, are due to market forces.” The art gallery rejected responsibility for NFT (non-fungible token) holders’ losses, arguing that the class action should be thrown out since it cannot be accountable for declines in NFT prices caused by a broader market downturn. In an attempt to dismiss the case, submitted to a New York federal court on Jan. 7, Eden Gallery Group claimed that “general market decline” in NFTs doesn’t prove that fraud or misrepresentation took place as claimed. “Plaintiffs may have buyers’ remorse (even though the NFTs were a digital art product rather than an investment product), but their losses, if any, are due to market forces.” In October, a group of 36 people who bought “Meta Eagle Club” NFTs filed a lawsuit against Eden Gallery. The group accused the gallery of fra...