Emojis count as financial advice and have legal consequences, judge rules

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In a recent court filing, a judge in the United States District Court for the Southern District of New York ruled that pictograms such as rocket ships, stock charts, and money bags represent “monetary gains on investments.” bottom.

Former branch manager of the U.S. Securities and Exchange Commission (SEC), Lisa Braganca, tweeted to warn users that the use of emojis that could indicate future profits could have legal implications. . She tweeted:

A federal judge has ruled that these pictograms objectively mean “one thing: financial return on investment.” Users of these emojis are warned of the legal consequences of their use. #Emoji #rocketshipemoji #DapperLabs https://t.co/4yRfWBH96R

— Former SEC Branch Manager Lisa Braganca (@LisaBraganca) February 23, 2023

Braganca share Link to court filings in which Federal Judge Victor Marrero dismissed the motion to dismiss the amended complaint alleging that Dapper Labs’ NBA Top Shot Moments violated security laws.

In the complaint, the judge noted that some of the tweets published on Twitter by the NBA Top Shots account contained emojis indicating financial gain. “And while the literal word ‘profit’ is not in any of the tweets, the ‘rocket ship’ emoji, the ‘stock chart’ emoji, and the ‘money bag’ emoji are objectively one It means two things: financial return on investment. I have written.

Oscar Franklin Tan, chief legal officer of NFT platform Enjin, also commented on the issue. Tan told Cointelegraph that Dapper Labs’ decision should not create a “dangerous rule” that emojis become the securities of his NFTs.

“Shit posts and emojis are also part of free speech, so courts should protect the NFT community’s edgy and freewheeling messages.”

Sneaker resellers can also use the same “FOMO” or “fear of missing out” pitch and use the emoji quoted on the case, Tan said.

Members of the cryptocurrency community reacted to the warning and tweeted various reactions. 1 of her Twitter users explained While the news is ‘tragic’, another news sharp Freedom of speech no longer extends to emojis. On the other hand, the user decided to make a declaration about the meaning of using emoji.

On February 23, attorneys also reacted to a judge’s decision to allow proceedings against Dapper Labs. U.S. Attorney Jake Chervinsky has pointed out that it is “absurd” for U.S. courts to consider assets on private blockchains to be securities. retailers, ticket sales platforms, and travel rewards programs may become SEC-regulated companies.

Related: SEC Lawsuit Against Paxos Over BUSD Stumps Crypto Community

Similarly, the SEC’s response to Terra also caught the attention of attorneys. On Feb. 17, a crypto attorney took to Twitter to express his thoughts on the SEC’s allegations that Terra had sold a series of cryptocurrency securities. , explained that anything could be a security, and attorney Justin Browder described the SEC’s actions as “wild.”