SEC Issues Wells Notice to Gaming Firm CyberKongz Over 2021 Genesis Kongz Transactions

CyberKongz, a gaming firm, has been issued a Wells Notice by the U.S. Securities and Exchange Commission (SEC). The notice is linked to the “sale” of Genesis Kongz in April 2021. In its statement, CyberKongz expressed disappointment and frustration with the SEC’s approach, stating that the regulator lacks understanding of blockchain technology, which has led to inaccurate accusations and confusion surrounding their project.

The company has been in contact with the SEC for over two years, with the recent controversy focusing on a combination of an ERC-20 token and a blockchain game. CyberKongz is committed to fighting this stance not only for its own project but also for the broader NFT and blockchain gaming community.

“We have been suffering in silence for the last two years, ever since we first received contact from the SEC,” stated CyberKongz. “We are extremely disappointed at the approach the SEC has taken towards us, but we’re going to stand up and fight for a brighter future that holds more clarity for NFT projects.”

A key point of contention between the SEC and CyberKongz is the “sale” of Genesis Kongz in April 2021. The company claims this was actually a contract migration, not a sale. CyberKongz believes that if the SEC cannot differentiate between primary sales and contract migrations, it raises significant concerns about the clarity of regulatory guidelines for digital assets moving forward.

In addition to criticizing the SEC’s approach, CyberKongz also expressed concern that the current administration may be pushing an anti-crypto agenda. However, they remain optimistic that the new administration will bring fairness to the regulatory landscape.

“We want to stand together with other leaders in the space,” concluded CyberKongz, “to fight for clearer regulations and a more secure future for our community.”

Source: coinpedia.org