SEC Launches Investigation into Yuga Labs and Other NFT Creators

October 12, 2022

MCP News Free

SEC Launches Investigation into Yuga Labs and Other NFT Creators

The US Securities and Exchange Commission is reportedly investigating the creator of Bored Ape Yacht Club (BAYC), Yuga Labs, and other NFT makers over unregistered offerings.

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SEC is Reportedly Probing Bored Ape Creators Over its Offerings

While citing people with knowledge of the matter, Bloomberg reported on October 11 that certain NFTs created by Yuga Labs are currently under the SEC probe as to whether certain NFTs are “more akin to stocks” and whether the sales of some digital assets violated federal laws.

Meanwhile earlier this year, SEC launches an investigation into wider NFT markets and was targeted at whether certain NFTs and fractional NFTs could fall under the US federal securities laws.

However, the ongoing report of Yuga Labs investigation is in addition to the SEC’s NFT markets probe.

“It’s well-known that policymakers and regulators have sought to learn more about the novel world of Web3,” said a Yuga Labs spokesperson.

“We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem. As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way,” he added.

In addition to these, Bloomberg also reported that the US regulators are examining the distribution of APE coin which was given to the holders of Bored Ape Yacht Club (BAYC) and other NFTs.

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