California investors say BIG3 failed to deliver promised franchise-sale proceeds and ownership benefits from 2022 NFTs as the league pushes to move the dispute into arbitration ahead of a planned SPAC merger.
BIG3 NFT holders are pressing claims in California that Ice Cube’s 3-on-3 basketball league failed to deliver ownership rights and sale proceeds tied to Ethereum-based NFTs sold in 2022, while BIG3 seeks to force the dispute into individual arbitration. Lou and Sally Sheward, who sued in summer 2025, say the league marketed “Fire” NFTs at $25,000 and “Gold” NFTs at $5,000 with promises including voting rights, VIP access, merchandise benefits, IP licensing rights and, for Fire-tier buyers, a collective 40% share of future franchise sale proceeds. The complaint says BIG3 later sold four franchises for about $40 million total without making the expected payouts and alleges the league renamed teams and paused original franchise operations to avoid those obligations. BIG3 is contesting the case and cites an arbitration clause in its 2022 terms of sale, with a hearing on its motion to compel individual arbitration set for August 24, 2026. The dispute is unfolding as BIG3 pursues a SPAC merger with Graf Global Corp that values the combined company at $290 million and is expected to close in the fourth quarter of 2026.