SEC Unveils Plan to Compensate Investors in Mila Kunis' Stoner Cats

The SEC seeks to compensate investors in Mila Kunis-backed Stoner Cats NFTs, which were deemed an unregistered securities offering that violated federal law.

The U.S. Securities and Exchange Commission (SEC) has announced a proposed plan to distribute funds collected from Stoner Cats 2 LLC following enforcement actions over securities violations.

In a court filing on Wednesday, the SEC detailed that the company conducted an unregistered sale of non-fungible tokens (NFTs).

Stoner Cats 2 LLC, the company behind the NFT-funded animated web series “Stoner Cats,” was notably backed by actress Mila Kunis. The animated web series featured voice talents from Kunis, Ashton Kutcher, and Chris Rock. The company sold 10,320 NFTs to the public for $800 each, amassing $8.2 million in proceeds. The SEC determined the offering was a sale of crypto asset securities and violated Sections 5(a) and 5(c) of the Securities Act of 1933. The company was fined $1 million, and a Fair Fund was created to compensate impacted investors.