Dolce & Gabbana USA Off The Hook In The $25M NFT Fraud Case

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The American federal judge in the Southern District of New York has finally acquitted Dolce & Gabbana in a class-action lawsuit involving its linked non-fungible token project. The luxury fashion house was accused of rug pulling its non-fungible token project after failing to fulfill its promise while retaining customers’ funds. Dolce & Gabbana joins the rapidly growing list of NFT projects that have narrowly escaped litigation.

D&G USA Acquitted In NFT Fraud Case

In a July 11, 2025, ruling published yesterday, her lordship Naomi Reice, the American federal Judge in the Southern District of New York, has dismissed the class-action lawsuit involving Dolce & Gabbana USA. Founded in 1996, Dolce & Gabbana USA is an American luxury fashion house that designs, manufactures, and retails high-end clothing, leather goods, footwear, jewelry, and watches.

The Dolce & Gabbana USA is a subsidiary of Dolce & Gabbana SRL, an Italian luxury fashion house known for its extravagant and elegant designs, often inspired by Italian culture and heritage. They also have a strong presence in the beauty and fragrance market. In the United States, the Dolce & Gabbana US has boutiques and is also available through wholesale and online channels.

The Dolce & Gabbana USA found itself in the corridors of justice in September 2024. At the time, the luxury fashion house, alongside its parent company, was accused of abandoning its DG Family non-fungible token project, causing investors to lose their investments. The DG Family NFT project, associated with Dolce & Gabbana, faced allegations of being a “rug pull” after failing to deliver promised benefits to non-fungible token holders.

Dolce & Gabbana accused of pocketing $25mln from failed NFT project https://t.co/mVmUXixiuh

— William Farrington (@willvfarrington) May 17, 2024

DG Family NFT Fraud Case Explained

Based on the charged sheet, the plaintiff claimed that the DG Family project abandoned its mission after collecting over $25 million and not providing promised digital and physical goods, and event access. However, a U.S. court dismissed the case against Dolce & Gabbana’s U.S. subsidiary, finding that the Italian parent company, not the U.S. branch, was responsible for the NFT project.

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Dolce&Gabbana and @UNXD_NFT announce the highly anticipated launch of the DGFamily community. 3 distinct Boxes + digital, physical, & experiential benefits that take holders on a journey between real life & the metaverse.https://t.co/JMmmWZuRPuhttps://t.co/sCWuIQSwnD

🧵👇 pic.twitter.com/r5t0M3FfBs

— Dolce & Gabbana (@dolcegabbana) February 21, 2022

Since the Dolce & Gabbana U.S. branch has been cleared of the litigation, it remains unclear how the lawsuit will proceed. Dolce & Gabbana has faced multiple legal challenges, including a significant tax evasion case that was ultimately dismissed. In 2014, Italy’s highest court acquitted the designers, Domenico Dolce and Stefano Gabbana, of tax evasion charges, concluding there was no case to answer.