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.
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