SEC Obtains $750K Settlement From 'World's First NFT Restaurant'

"The line between innovation and a potential securities violation remains murky," said Helen Gugel, a partner at Am Law 10 firm Ropes & Gray who is not involved in the matter.

September 17, 2024 at 11:57 AM

4 minute read

Cryptocurrency

By Michael A. Mora

The original version of this story was published on New York Law Journal

What You Need to Know

Flyfish Club LLC sold NFTs at two price points and generated gross proceeds of approximately $14.8 million.
The U.S. Securities and Exchange Commission obtained a $750,000 settlement from the company.
An expert advised an alternative method for similar businesses to avoid SEC scrutiny.

The U.S. Securities and Exchange Commission obtained a $750,000 settlement from Flyfish Club LLC over its offer and sale of securities through the form of non-fungible tokens, a unique digital identifier on the blockchain used to certify ownership.

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