NFT Project CyberKongz Vows To ‘Stand Up and Fight’ After Receiving Wells Notice From SEC

The US Securities and Trade Fee (SEC) lately despatched a discover from Wells to CyberKongz, indicating that the regulator plans to take enforcement motion towards the non-fungible token (NFT) venture.

CyberKongz made the announcement this week, saying it plans to “rise up and combat” in response to the SEC’s crackdown.

“We’ve got suffered in silence for the previous two years, ever since we first contacted the SEC. All through the method, they’ve demonstrated a whole lack of expertise of blockchain applied sciences, which has resulted in unwarranted accusations and inaccuracies within the info.

CyberKongz is a venture deeply rooted in gaming and the SEC’s Division of Enforcement has approached us with the very disturbing rhetoric that you just can’t have a token (ERC-20) along side a blockchain recreation with out registering it as a safety. This discourse would have main ramifications for all the Web3 gaming trade, and we are going to defend towards this place within the broader area.”

The SEC additionally despatched a discover from Wells to the NFT market OpenSea in August, claiming that NFTs on the platform are securities.

CyberKongz additionally says the regulator’s Wells discover “demonstrated a baffling interpretation of good contracts.”

“One in every of their largest considerations with CyberKongz considerations the ‘sale’ of Genesis Kongz in April 2021, which was really a contract migration. If they can’t distinguish between a major sale and a contract migration, what hope can we at present have for a transparent regulatory pathway sooner or later?”

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