CyberKongz and Ethereum NFT announced on Tuesday that U.S. Securities and Exchange Commission had ended their investigation into the project. The announcement adds to an ever-growing list of completed investigations by the SEC, since it shifted to a crypto-friendly administration led by President Donald Trump.
This project claimed to have been in touch with the Commission at least for two years. Wells received a notice of receipt From the regulator, December. Wells’ notices inform recipients that SEC may take enforcement action, but the investigation has now ended. They are not enforceable or without findings.
When contacted by, a spokesperson for the SEC declined to comment. Decrypt. The regulator refused to make any comments when companies reported that their investigations were closed in the last few weeks.
“After years of litigation, unjust allegations, crippling legal fees, and the biggest hurdle we could possibly encounter—we are free,” the This project was posted by X (formerly Twitter). CyberKongz is extremely proud of this moment. “We are a passionate and creative Web3 group that chose to fight for the improvement of Web3 in this war.”
SEC’s examination of the project was based on the use by the company of its BANANA token, along with a blockchain-based game and Genesis Kongz. contract migration in 2021—which regulators had apparently interpreted as a token sale.
CyberKongz referred to the SEC token discussion as “unacceptable” because of the growing popularity of tokens launched alongside blockchain-based games.The following is a very disturbing rhetoricThis could have “major implications for the Web3 gaming sector as a whole.”
The project leadership now believes that this will give clarity to other projects in the Web3 gaming sector.
“We have taken some hard hits; but ultimately we have come through the other side—stronger and more determined than ever,” said pseudonymous CyberKongz creator and artist Myoo on X. Kongz is going to do what it does best in the next chapter.
CyberKongz was not the first NFT-adjacent cryptocurrency project to declare a victory against the SEC. Yuga Labs’ Bored Ape Yacht Club was created by Yuga Labs in early march. Announced that it has completed its investigation The SEC has closed the case, announcing that it was a “huge victory” for NFTs.
OpenSea, a NFT market place also underwent an investigation Dropped by the Commission In late February. It was still chilly last week. still seeking clarity From the regulator regarding NFT rules
CyberKongz released its NFT genesis collection on Ethereum 2021. This project has led to multiple collections of its companions, one being on Ethereum Gaming sidechain RoninWhere is it? migrated its Play & Kollect game By 2023.
The project’s flagship collection, which once boasted sales of over $300,000 worth of Ethereum now begins at $5,447. NFT Floor Price.
Andrew Hayward edited the book
