Flyfish Club, Backed by Gary Vaynerchuk, Settles with SEC Over NFT Violations, Pays $750,000 Fine

Sep 16, 2024, 11:48 PM

Flyfish Club, a planned private dining club and restaurant in New York City, has settled with the U.S. Securities and Exchange Commission (SEC) over alleged violations related to the sale of non-fungible tokens (NFTs). The club, supported by entrepreneur Gary Vaynerchuk, sold NFTs as the exclusive means of accessing the yet-to-be-built venue. Between August 2021 and May 2022, Flyfish Club raised $14.8 million by selling approximately 1,600 NFTs. The SEC deemed these NFTs as unregistered crypto asset securities, leading to a $750,000 fine. As part of the settlement, Flyfish Club agreed to destroy all NFTs and cease accepting related royalties.