According to WuSay, the NFT project CyberKongz announced that it had received a Wells Notice from the U.S. Securities and Exchange Commission (U.S. SEC) and may face enforcement action.
CyberKongz said the SEC is concerned about its connection with blockchain games and ERC-20 tokens, especially the contract migration issue of Genesis Kongz in 2021.
CyberKongz plans to defend itself and call for a clearer regulatory path for NFT projects. The SEC has not yet commented on the matter.