- After two years of negotiations, CyberKongz claimed in a post on X on Monday that it has received a Wells Notice from the U.S. Securities and Exchange Commission.
- CyberKongz claimed that since the SEC first contacted them two years ago, it has “been suffering in silence.”
After been questioned over the years regarding gaming and smart contracts, NFT collection CyberKongz claims the U.S. Securities and Exchange Commission intends to file charges against it.
CyberKongz reported on X Monday that it has received a Wells Notice from the SEC, which is a notification from SEC employees informing a corporation that the agency may suggest an enforcement action against them.
The NFT collection posted that CyberKongz has gotten a Wells Notice from the SEC. Although we are deeply dissatisfied with the SEC’s treatment of us, we will take a stance and fight for a better future with greater transparency for NFT projects.
Regarding the presence or nonexistence of a potential probe, the SEC makes no comments.
When the SEC first got in touch with them, it had been suffering in quiet for the previous two years. The SEC’s enforcement team, according to the NFT collection, raised the extremely alarming argument that a token (ERC-20) cannot be used in conjunction with a blockchain game without being registered as a security.
Additionally, CyberKongz said that in April 2021, the SEC expressed worry about CyberKongz’s commercial dealings with Genesis Kongz, which CyberKongz claimed involved contact migration.
What chance do we now have for a clear regulatory road going ahead, given their inability to differentiate between a primary sale and a contract migration?
According to CyberKongz, it intends to advocate for more transparent regulations, particularly with regard to NFT initiatives.
In the post, CyberKongz stated, “It is becoming more and more clear that the current administration is attempting to impose their anti-crypto agenda at the last minute.” “We will continue to advocate for NFT projects on all chains until the new administration ends this injustice in our business.
The SEC has filed multiple NFT-related allegations in the last 12 months. After initially accusing podcast studio Impact Theory, the agency went on to sue Stoner Cats 2 LLC for engaging in an unregistered offering of NFTs that generated $8 million in investor revenue. OpenSea, an NFT marketplace, has also announced that it has received a Wells Notice.
What happens to the SEC’s ongoing enforcement actions is unknown. Gary Gensler, the current chair of the SEC, announced his intention to resign on January 20, the day of President-elect Donald Trump’s inauguration.
Former SEC Commissioner Paul Atkins, who has been supportive of cryptocurrency, was appointed by Trump to head the SEC.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
