DraftKings has shut down its NFT Marketplace and Reignmakers fantasy game due to what it terms “recent legal developments,” likely referring to the lawsuit it faces from Justin Dufoe. 

Earlier this month, a Massachusetts federal judge denied DraftKings’ attempt to have the case dismissed, and the company may be seeking alternatives to a trial.

Dufoe’s suit claims that the Reignmakers NFTs constitute securities, which would require oversight and approval from the Securities & Exchange Commission (SEC). Central to that claim is the fact that DraftKings not only sells the non-fungible tokens but also controls the marketplace through which users can resell them. Dufoe argues that this means users’ hopes of turning a profit are contingent on the commercial success of Reignmakers and DraftKings Marketplace.

Because the NFT blockchain is decentralized, it’s technologically possible to transfer Reignmakers NFTs off DraftKings’ servers. However, the company owns the wallets holding the NFTs, and its terms of service required users to seek permission to transfer the tokens to private wallets. Per Judge Denise J. Casper’s ruling against dismissal, there’s no evidence that any users did so in practice.