The SEC issued a Wells Notice to the NFT project CyberKongz, alleging securities violations related to the sale of Genesis Kongz NFTs in April 2021.

CyberKongz explained the "sale" was just a contract migration (moving contracts from one system to another), questioning the SEC for not knowing the difference.

CyberKongz said such discourse would have “major implications” for the Web3 gaming industry and that the enforcement action is a last-minute attempt from the Biden administration to set the industry back.