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NFT Gaming Project CyberKongz Gets Wells Notice from the SEC
The U.S. Securities and Exchange Commission (SEC) has issued a Wells notice to CyberKongz, a non-fungible token (NFT) gaming project, on December 17th. According to reports, the notification implies that an enforcement action is being considered against the firm.
In response, CyberKongz released a statement stating that the SEC’s concerns are centered around their Genesis Kongz NFT sale in April 2021. The company claims that this event was merely a contract migration and not a first-time offering of securities. They also emphasized that they have been self-funded throughout most of their history and have “silently suffered for two years.”
The SEC has increased its scrutiny over the blockchain gaming sector, ensuring compliance with existing securities laws. CyberKongz is just one example of the agency’s attempt to regulate the rapidly growing crypto and NFT markets.
In related news, Immutable, a cryptocurrency company in Australia, also received a Wells Notice from the SEC earlier on.
Following the announcement, CyberKongz’ NFT prices surged by more than 19%, averaging at 8.59 ETH or approximately $26,900, as per data from CoinGecko.
Source: cryptotale.org
