According to ChainCatcher, the NFT project CyberKongz posted on the X platform that it has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC). This is a form of communication issued by SEC staff aimed at informing companies that the agency staff may recommend enforcement action against them.
The team stated: "Since we first received contact from the U.S. Securities and Exchange Commission, we have been silently enduring for the past two years. Throughout this process, they have demonstrated a complete lack of understanding of blockchain technology, leading to unfair accusations and inaccurate information. CyberKongz is a project rooted in the gaming field, and the SEC's enforcement division has made very concerning statements to us, indicating that the tokens (ERC-20) cannot be combined with blockchain games unless they are registered as securities. Such statements will have a significant impact on the entire Web3 gaming industry, and we will oppose this position in a broader context."