DraftKings is officially ceasing operations of its NFT business.

The Boston-based gaming giant confirmed to SBC Americas on Wednesday the shuttering of its NFT marketplace and Reignmakers, which launched in 2022 as a product allowing users to purchase and collect NFTs of a given athlete to enter into DFS-style contests. DraftKings showcased an early commitment to its NFT products by hiring brand ambassadors, including Grammy-nominated DJ Steve Aoki, to promote Reignmakers.

Now, DraftKings is taking a step back to focus on its DFS and sports betting operations.

“It has always been in DraftKings’ DNA to innovate and disrupt in order to provide the best possible gameplay experiences for our customers. Reignmakers and our NFT marketplace saw immediate success upon launch, and we are proud of what we accomplished in such a short time,” said a DraftKings spokesperson. “After careful consideration, DraftKings has decided to discontinue Reignmakers and our NFT marketplace, effective immediately, due to recent legal developments. This decision was not made lightly, and we believe it is the right course of action.”

DraftKings has closed its NFT marketplace amid legal woes concerning the product.

A Massachusetts District Court judge recently denied the company’s motion to dismiss a class action lawsuit first filed in March 2023 by plaintiff Justin Dufoe. In the complaint, Dufoe alleges DraftKings provided NFTs and tokens through the marketplace that amounted to unregistered securities. A judge determined that Dufoe’s claims had merit leading to the dismissal of DraftKings’ motion to dismiss. The suit also names CEO Jason Robins, DraftKings North America President Matt Kalish, and CTO Jason Park as defendants.

Owners of DraftKings’ NFT products will be compensated for the company’s decision to close up shop. The company is allowing customers with its digital products to return them for cash if certain conditions are met. Beginning within a week after July 30, DraftKings will allow customers to seek payments for their NFTs with amounts yet to be disclosed.

DraftKings is expected to continue dealing with its NFT-related woes as legal proceedings move forward. The company could face a similar fate as NBA Top Shot. Last month, the NFT company settled a class action suit for $4 million for illegally offering securities.