Magic Johnson Promoted NFT, ‘Metaverse’ Scam, Investor Alleges

A company that says it invested $250,000 in a nonfungible token project in return for a business opportunity and a share of revenue has sued basketball legend Earvin “Magic” Johnson and the project’s creator.

The Magicverse Genesis NFT collection never materialized, and offering party Carrie Lyn Henman disappeared along with the invested funds, DoneRight & Co. says. The company filed its complaint Wednesday in the US District Court for the Central District of California on its own behalf, not on behalf of a proposed class.

The status of NFTs as securities is a developing legal issue. A federal court in ...