Dapper Labs allowing NFT withdrawals for users affected by EU sanctions

Quick Take

  • Dapper Labs is letting users affected by EU sanctions against Russia withdraw their NFTs to a non-custodial wallet.
  • The company previously froze access — including withdrawals — for affected users after Circle directed it to take action.

Dapper Labs is now allowing users affected by the European Union's sanctions against Russia to withdraw their NBA Top Shot, NFL All Day and UFC Strike NFTs from their Dapper Wallet to a Blocto Wallet, according to an email sent to users and seen by The Block.

The company also notes that its prior action to restrict accounts related to Russia was the result of a directive from Circle, the large peer-to-peer payments technology company behind the stablecoin USDC, which acts as Dapper's payment processing and stored value service partner.

"Circle holds custody over customer funds and because they required immediate action, we had to comply with their direction in this instance and suspend accounts with connections to Russia, but we did not close any of these accounts," the Dapper team wrote in the email. It also noted that its quick movement to remain compliant was made to prioritize the safety of the community. Dapper Labs was contacted for comment but did not respond by press time. 

The Block previously reported that Dapper Labs froze accounts with ties to Russia on October 7 after obtaining emails sent to affected users.

Dapper claims that it is "working to provide support to the maximum extent permitted by law as well as identifying solutions for account holders." One such solution is the construction of "alternative NFT custody solutions" to afford users the ability to move NFTs off of Dapper.

Dapper is not alone in taking action against Russian-tied accounts, in line with new EU sanctions. Last week, Blockchain.com and Crypto.com sent out emails to affected users detailing account restrictions — with the former allowing a withdrawal period for custodial funds.

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