SEC to Investigate Yuga Labs' Illegal Offerings
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Yuga Labs, the company behind the well-known Bored Ape Yacht Club (BAYC) non-fungible token (NFT) collection, is the subject of fresh investigations by the United States Securities and Exchange Commission (SEC) over the sale of unregistered securities.
Investigated for making illegal offers is Yuga Labs
The regulatory authority is looking into Yuga Labs to see whether its non-fungible tokens (NFTs) and ApeCoin are unregistered securities, according to a report from Bloomberg on October 12th.
According to the most recent sources, the regulatory body has done further investigation to see if the cryptocurrency firm broke any rules by issuing NFTs that act as stocks and digital assets. The agency is also looking into how ApeCoin, which was introduced last year, is distributed.
But Yuga Labs said that the regulatory authority had not accused them of breaking any laws in a brief statement to Bloomberg. Yuga Labs has committed to provide the commission with its full assistance during the inquiry. Yuga Labs observed:
“It’s well-known that policymakers and regulators have sought to learn more about the novel world of Web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem. As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”
SEC Examines Crypto Sector Closely
In recent months, the SEC has tightened its inspection of the cryptocurrency and NFT markets. Gary Gensler, the head of the SEC, has expressed opinions indicating that almost any other digital token outside Bitcoin might be a security ever since he was appointed in April 2021.
Nine tokens offered on the cryptocurrency exchange Coinbase were declared securities by the SEC in July 2022. The commission claimed that these tokens at the time had all the characteristics of securities.
One of the most well-known women in the world, Kim Kardashian, was accused by the commission last week for allegedly endorsing an unregistered cryptocurrency token called "EMAX" on her Instagram page. Kardashian was hit with a $1.4 million SEC punishment.
ApeCoin has since responded angrily to the recent statements. The cryptocurrency has decreased by around 9% during the last 24 hours, according to CoinGecko.
Thanks to Dominic Kimani at Business 2 Community whose reporting provided the original basis for this story.