Shalini Nagarajan

<div id="highlights-block_6344051f1cd17" class="highlights">
 <ul>
 <li>The impacted Dapper accounts haven’t been closed but services are restricted</li>
 <li>Dapper’s move is in line with the EU’s tightening Russian crypto ban</li>
 </ul>
 
</div>



Dapper Labs, the Web3 startup behind <a href="https://cms.blockworks.co/nba-top-shot-creator-raises-725m-fund-to-grow-flow-blockchain-usage/" target="_blank" rel="noreferrer noopener">NBA Top Shot</a>, has imposed a near-complete ban on Russian users in a bid to stay inline with fresh sanctions on the country.



“It is now prohibited to provide cryptoasset wallet, account, or custody services of any value to accounts with connections to Russia, irrespective of the amount of the wallet,” Dapper Labs said in a <a href="https://support.meetdapper.com/hc/en-us/articles/5486302427795-Restrictions-Affecting-Collectors-in-Russia" target="_blank" rel="noreferrer noopener">statement</a> last week.



The Vancouver-based blockchain company said the move was a result of a directive from its payment processing partner, which is subject to European Union regulations. 



On Oct. 6, the EU confirmed a <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5989" target="_blank" rel="noreferrer noopener">sweeping ban</a> on providing crypto services to Russia as part of its eighth round of sanctions against the country for its aggression in Ukraine. 



The Dapper wallet is a custodial wallet for digital assets on Dapper Labs’ Flow blockchain, originally launched in 2020 as a gaming-focused network but now underpins a raft of NFT-centric projects.



The wallet supports NFT offerings NBA Top Shot, Allday, UFC Strike, CryptoKittes, which implies they will all be affected by the ban.&nbsp;



Under new measures, the bloc tightened a previous rule that restricted crypto payments to and from Russian accounts up to 10,000 euros ($9,727). The threshold has now been removed, banning all cryptoasset wallets, accounts or custody services.



<h3 class="wp-block-heading">Dapper Labs NFTs still ‘belong’ to Russians — they just can’t move them</h3>



Despite Dapper Labs stating it could no longer offer custody services to Russia-based users, the firm says those affected can still view and access their NFTs via its wallet, as it has only suspended accounts — not deleted them.



Dapper Labs says this means any NFT previously purchased by an affected Russian user still belongs to them. 



Blockworks has reached out to Dapper Labs to confirm whether the Flow blockchain itself would actively censor Russia-based users and will update this piece as we hear back.



“Any Moments you own and any Dapper Balance continue to be your property,” the company said in its blog post, referring to the blockchain-based collections that users hold.



But they can’t buy, sell or gift any NFTs, even by using their existing account balances.



The EU believes its crypto clampdown is warranted as the previous 10,000 EUR cap wasn’t effective. Its sanctions are “imposing a direct cost on Russia for its war of aggression and damaging Russia&#8217;s industrial and economic ability to wage war, manufacture more weapons, and repair existing weapons systems.”



Although Western powers have adopted several rounds of sanctions since Russia invaded Ukraine in February 2022, Moscow has not indicated a possible diplomatic solution. 



On Monday, <a href="https://www.aljazeera.com/news/2022/10/10/explosions-rock-ukraine-capital-kyiv-in-apparent-missile-strikes" target="_blank" rel="noreferrer noopener">massive explosions</a> shook Ukraine&#8217;s capital Kyiv and other cities in apparent revenge attacks.



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Dapper Labs NFT Wallet Restricts Russian Users After EU Sanctions

Jacquelyn Melinek

<div id="highlights-block_614b795a9af08" class="highlights">
 <ul>
 <li>“Dapper Labs will use the new funding to continue to scale and support major additional brand-driven sports, entertainment and music based products coming online and being developed on the Flow blockchain,” the company said</li>
 <li>Technological financial services crypto-based company Bit2Me closed its third phase of its initial coin offering (ICO) in just 38 seconds, the company said on Wednesday</li>
 </ul>
 
</div>



Dapper Labs, the creator of CryptoKitties, NBA Top Shot and the Flow blockchain, has closed a $250 million round in new funding led by Coatue, the company announced Wednesday.&nbsp;



The new round brings together established investors from Andreessen Horowitz (a16z,) GV (formerly Google Ventures) and Version One Ventures along with new investors including BOND and GIC.



“Dapper Labs will use the new funding to continue to scale and support major additional brand-driven sports, entertainment and music based products coming online and being developed on the Flow blockchain,” the company said.&nbsp;



The company’s Flow blockchain consists of over 500 developers and more than 100 known projects of decentralized applications for games, NFTs, DeFi and tools, according to its website. Flow also is launching UFC, or Ultimate Fighting Championship, digital collectibles for users to buy, sell, trade and collect on its blockchain, however a date for that was not disclosed.&nbsp;



This year has shown exponential growth for Dapper Labs. While beta testing its flagship product NBA Top Shop, it grew 30 times during the year, with over $780 million in collectibles bought and sold across 13 million transactions and over 1.1 accounts registered, the company said.







While Dapper Labs has grown quickly, its CEO Roham Gharegozlou said it has just scratched the surface of what the technology can do for users. The company will scale NBA Top Shot, launch new titles and improve the ecosystem building on its Flow blockchain, Gharegozlou said.&nbsp;



In March, Dapper Labs <a href="https://cms.blockworks.co/dapper-labs-superrare-consensys-and-nifty-gateway-make-nft-news/" target="_blank" rel="noreferrer noopener">raised $305 million</a> in funding, also led by Coatue. At the time, existing strategic investors included a16z, The Chernin Group, Union Square Ventures, Version One and Venrock also participated alongside Michael Jordan, Kevin Durant and other National Basketball Association players, Blockworks previously reported. 



<h3 class="wp-block-heading">Spain-based Bit2Me closes initial coin offering</h3>



Technological financial services crypto-based company Bit2Me closed its third phase of its initial coin offering (ICO) in just 38 seconds, the company said on Wednesday. In total the Spain-based company raised about $23.4 million, or €20 million.



It raised about $20.5 million, or €17.5 million, in less than three minutes across three public sale phases that took place throughout September. The company also raised $2.9 million, or €2.5 million, from an earlier private sale, it said.



&#8220;As of November 1, our tokens will be available for purchase, like any other cryptocurrency, on Bit2Me, Bittrex, and increasingly on more platforms,” said Abel Peña, chief revenue officer at Bit2Me.&nbsp;



Bit2Me offers over 20 solutions to buy, sell and manage virtual currencies and euros from a single place. Since its inception in 2015, it has expanded to clients across 100 countries and manages operations worth about $1.2 billion.



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