The promise of “forever ownership” was apparently not forever. A group of NFT buyers of the BIG3 basketball league, founded by rapper-actor Ice Cube, has filed a class-action lawsuit, alleging the league broke its promises regarding team ownership rights originally sold alongside the digital collectibles in 2022.
$25,000 for an “Owner” Seat, Not Just a Spectator
In 2022, BIG3 sold NFTs across two tiers: “Fire” for $25,000 and “Gold” for $5,000 each. Buyers were promised more than just digital collectible images, but tangible rights: participation in team management decisions, full-season VIP tickets, voting rights on team matters, and a share of profits if teams were sold in the future. Ice Cube himself called it a “no-brainer” at the time, describing it as part of a paradigm shift in sports ownership via Web3.
According to the plaintiffs’ attorney, Joseph Sakai, his clients invested substantial capital based on those promises - yet those rights reportedly lasted only three years, rather than forever as promised. The lawsuit alleges that BIG3 gradually stripped away the promised perks, effectively downgrading NFT holders from “team owners” to mere “ordinary ticket holders.”
Four Teams Sold for $40 Million, NFT Holders Left Empty-Handed
What further fuels the lawsuit: in 2024, BIG3 sold four teams to outside investors for a total value of around $40 million. Plaintiffs allege that a portion of these sales should have included financial rights for “Fire” NFT holders - yet none of them received a share. The league reportedly bypassed these obligations by rebranding the new teams as “expansion teams,” while the original NFT-linked teams were placed on hiatus.
The case emerges just as BIG3 is planning a major move: a merger with Graf Global Corp via a SPAC deal valuing the combined entity at $290 million, targeted for completion in the fourth quarter of 2026 - making BIG3 one of the first traditional sports leagues to go public through this route.
When “Ownership via NFTs” Is Tested in Court
The BIG3 dispute adds to a growing list of cases where promised utility perks from sports NFTs end up in court once market values plummet. For prospective buyers of similar “utility-based” NFTs in the future, the case serves as a reminder: no matter how appealing oral promises or marketing pitches sound, only what is clearly written in contracts is legally binding.
Reported by Decrypt.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
