According to ChainCatcher news, the NFT project CyberKongz announced on the X platform that it received a Wells Notice from the U.S. Securities and Exchange Commission (SEC). This is a form of communication issued by SEC staff to inform companies that the agency's 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 shown a complete lack of understanding of blockchain technology, leading to unjust accusations and inaccurate information. CyberKongz is a project rooted in the gaming space, and the SEC enforcement division has made some very concerning statements to us, indicating that if the tokens (ERC-20) are not registered as securities, they cannot be associated with blockchain games. Such statements will have a significant impact on the entire Web3 gaming industry, and we will oppose this stance on a broader scale.”