According to BlockBeats news, on December 17, the NFT project CyberKongz posted on the X platform that it had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC). The team said: “We have suffered in silence for the past two years since we were first contacted by the SEC. Throughout the entire process, they have demonstrated a complete lack of understanding of blockchain technology, resulting in Due to unfair accusations and inaccurate information, CyberKongz is a project rooted in the gaming space, and the SEC Enforcement Division has made very concerning statements to us that the token (ERC-20) cannot be used with blockchain games without registering it as a security Combined. This kind of rhetoric will have a significant impact on the entire web3 gaming industry, and we will oppose this position more broadly.”
BlockBeats Note: Wells Notices are standard procedure in the regulatory world, particularly when it comes to scrutinizing cryptocurrency-related companies for potential illegal activity. When a company receives a Wells Notice, it may be subject to sanctions, penalties or other penalties. In some cases, businesses may need to suspend certain operations. If the SEC decides to proceed with enforcement after the Wells Notice is issued, it may even freeze a business’s assets or file formal charges against the company in federal court. The actions mark the beginning of a lengthy legal process in which the company will have an opportunity to mount a defence.
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