Summary
- CyberKongz recently announced that it received a Wells Notice from the SEC.
- The SEC claims that the ERC-20 tokens and blockchain games operated by CyberKongz must be registered as securities.
- The SEC is strengthening legal actions against the NFT industry, so caution is needed regarding volatility in this sector.
The U.S. Securities and Exchange Commission (SEC) is reportedly preparing legal action against the NFT collection CyberKongz.
According to The Block on the 16th (local time), CyberKongz announced via X (formerly Twitter) that "we have been in contact with the SEC for the past two years and recently received a Wells Notice." A Wells Notice is a document that requires a potential lawsuit target to provide a preliminary explanation.
CyberKongz stated that the conflict with the SEC began in 2021. The SEC claims that the Ethereum-based ERC-20 tokens and blockchain games must be registered as securities.
Meanwhile, the SEC has been actively taking legal action against the NFT industry recently. Projects like Impact Theory and Stoner Cats 2 LLC have been sued for violating securities laws, and the NFT marketplace OpenSea has also received a Wells Notice.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
