BlockBeats news, on December 17, the NFT project CyberKongz posted on the X platform stating that they received a Wells Notice from the U.S. Securities and Exchange Commission (SEC). The team stated: "Since we first received contact from the SEC, we have been silently enduring for the past two years. Throughout this process, they have shown a complete lack of understanding of blockchain technology, leading to unfair accusations and inaccurate information. CyberKongz is a project rooted in the gaming sector, and the SEC's enforcement department has made very concerning statements to us, indicating that if the tokens (ERC-20) are not registered as securities, they cannot be combined with blockchain games. Such statements will have a significant impact on the entire web3 gaming industry, and we will oppose this position in a broader context."
BlockBeats Note: A Wells Notice is a standard procedure in the regulatory field, particularly regarding the review of potential illegal activities related to cryptocurrency companies. When a company receives a Wells Notice, it may face sanctions, penalties, or other forms of punishment. In some cases, businesses may need to suspend certain operations. If the U.S. Securities and Exchange Commission (SEC) decides to continue enforcement actions after the issuance of the Wells Notice, it may even freeze the company's assets or file formal charges against the company in federal court. These actions mark the beginning of a lengthy legal process, during which the company will have the opportunity to present a defense.