CyberKongz said it has been “suffering in silence for the past two years” since being contacted by the US SEC, which takes issue with the April 2021 “sale” of Genesis Kongz NFTs. However, CyberKongz said this is a contractual transition and not a token sale.
CyberKongz said Biden administration is attempting last-minute enforcement action
CyberKongz, a non-fungible token (NFT) platform, has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC).
In a post to Blockchain games cannot be issued without being registered as securities.
“This discussion will have a major impact on the entire Web3 gaming industry. We will defend this stance in the broader field,” CyberKongz wrote.
CyberKongz received a Wells Notice from the SEC.
We are extremely disappointed in the approach the SEC has taken against us, but we intend to stand up and fight for a brighter future with more clarity for NFT projects.
We have suffered in silence until the end… pic.twitter.com/lc6hyzUPb0
— CyberKongz (@CyberKongz) December 16, 2024
The SEC believes it may have violated securities laws by issuing a Wells notice and is preparing to take action against the platform. One of the issues the SEC has with CyberKongz is the “sale” of Genesis Kongz NFTs in April 2021. According to CyberKongz, this is a contractual transition and not a sale.
“If they can’t distinguish between primary sales and contractual transitions, then what hope do we have at this point for a clear regulatory path going forward?”
CyberKongz added that the Biden administration is looking to take last-minute enforcement action, adding:
“We hope the new administration will put an end to this injustice to the industry, but until then we will fight for all chain NFT projects.”
Earlier this year, cryptocurrency exchange Coinbase received a Wells Notice from the SEC, followed by NFT marketplace OpenSea and blockchain gaming platform Immutable.
