CyberKongz Receives SEC Wells Notice Over Unregistered Securities Offerings After Two Years of Investigation

Dec 16, 2024, 08:42 PM

CyberKongz, a prominent NFT project, has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), indicating potential violations related to unregistered securities offerings. The project expressed disappointment with the SEC's approach, emphasizing its commitment to advocating for clearer regulations in the NFT space. According to CyberKongz, the SEC's Division of Enforcement has raised concerns about the legality of having a token associated with a blockchain game without registering it as a security. The project revealed that it had been under investigation by the SEC for the past two years. This action follows similar scrutiny faced by other NFT platforms, raising questions about regulatory practices affecting the broader cryptocurrency and NFT markets.