Back-to-Back Wells Notices: SEC Targets CyberKongz After Unicoin

• CyberKongz faces SEC legal action over NFT token classification. 
• SEC challenges CyberKongz’s token pairing with blockchain game.
• CyberKongz fights for clearer NFT and Web3 regulations.

The SEC seems busy these days as Gary Gensler’s term as chair is nearing its end. The agency just served another Wells Notice, this time to NFT collection CyberKongz. This signals possible enforcement action. Earlier today, the SEC issued a similar notice to crypto investment firm Unicoin.

This Wells Notice follows charges against CyberKongz. It shows the SEC believes CyberKongz may have violated securities laws. CyberKongz, on its part, has vowed to fight the SEC and push for clearer rules for NFTs.

The SEC is concerned about CyberKongz’s ERC-20 token and its blockchain game. The SEC says this setup could make the token a security, requiring registration like other securities under US law.

CyberKongz has received a Wells Notice from the SEC.

We are extremely disappointed at the approach the SEC has taken towards us, but we are going to stand up and fight for a brighter future that holds more clarity for NFT projects.

We have been suffering in silence for the last… p…

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