CyberKongz, a gaming-based NFT project, announced on December 16 that it has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC).
The notice raises concerns about the platform’s integration of its ERC-20 token with blockchain games and questions aspects of its activities, including its 2021 contract migration.
The SEC’s Argument
In a post on X, the CyberKongz team expressed their dismay with the agency’s handling of the situation, saying:
“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.”
They disclosed that the issue began two years ago when the regulator first contacted them, during which time they operated quietly and under a lot of pressure.
The post highlighted that the SEC’s main concern appears to center on whether ERC-20 tokens can function…
