Connect with us

News

SEC to Investigate Yuga Labs Over Unregistered Offerings

Published

on

The US Securities and Exchange Commission (SEC) is probing Yuga Labs Inc., creators of Bored Ape Yacht Club NFTs. According to Bloomberg, the commission is beaming its searchlight on the company for reportedly violating federal law following sales of digital assets. 

The SEC’s investigation will ascertain where NFTs launched by Yuga Labs should be classified as stocks and therefore, subject to the disclosure rules. In addition, although the probe is reportedly private, the regulator will also investigate the distribution of ApeCoin, the native cryptocurrency of the Yuga Labs ecosystem. Earlier this year, the cryptocurrency was distributed as an airdrop to holders of BAYC, MAYC, and BKC collections.

Meanwhile, Yuga Labs has pledged its commitment to the investigation.

“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,” Yuga said in a statement to Bloomberg News. “As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”

The firm’s investigation comes on the heels of ecosystem-wide efforts by the SEC chair Gary Gensler to ensure the crypto market abides by regulations. Last week, the commission fined popular influencer Kim Kardashian for promoting crypto securities. 

Read also;

Opensea Expands Access to Avalanche NFTs Launches Support

Justin Sun Joins Huobi’s Advisory Board

Nigeria has What it Takes to become a World Leader in the Digital Economy— Yemi Osinbajo

What do you think of this article? Share your comments below. 

0 0 votes
Article Rating
Advertisement Earnathon.com
Click to comment
0 0 votes
Article Rating
Subscribe
Notify of
guest

0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Crypto News Update

Latest Episode on Inside Blockchain

Crypto Street

Advertisement



Trending

ALL Sections

Recent Posts

0
Would love your thoughts, please comment.x
()
x