SEC Charges Creators of Stoner Cats for Selling Unregistered Securities
The United States Securities and Exchange Commission (SEC) has taken legal action against the creators of the NFT project Stoner Cats. The SEC alleges that the creators sold unregistered securities during the launch of the NFTs in 2021.
Stoner Cats 2 LLC, the company responsible for the NFT-based cartoon project, has agreed to a cease-and-desist order. As part of the settlement, the company will pay a $1 million civil penalty without admitting fault. They have also committed to destroying any remaining NFTs and establishing a “Fair Fund” to refund investors who participated in the primary sale.
The project was developed by Orchard Farm Productions, the production studio of actress Mila Kunis. Kunis herself voiced one of the characters in the cartoon series, alongside her husband Ashton Kutcher, Chris Rock, Ethereum creator Vitalik Buterin, and others.
Hot Take: Stoner Cats Faces SEC Charges for Unregistered Securities Sale
The creators of the NFT project Stoner Cats have found themselves in legal trouble as the SEC accuses them of selling unregistered securities. Stoner Cats 2 LLC, the company behind the cartoon series, has agreed to a cease-and-desist order and will pay a $1 million civil penalty. The creators, including actress Mila Kunis and Ethereum creator Vitalik Buterin, have not admitted fault but will destroy any remaining NFTs and establish a refund fund for investors. This case highlights the regulatory challenges faced by projects in the crypto space and the importance of complying with securities laws. As the story continues to develop, it serves as a reminder for creators and investors to navigate the NFT landscape carefully and ensure compliance with regulatory requirements.
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