Screenshot of website of Genesis Kongz NFTs.‘Badge of Honor’: SEC Targets CyberKongz in Token Registration Dispute
“A criminal statute of limitations on regulations cannot be retroactive, but on the civil side, if it is clarifying existing law subject to SEC jurisdiction and authority, it would be something that could be enforced going forward,” said Neama Rahmani, the president of West Coast Trial Lawyers.
December 18, 2024 at 05:12 PM
3 minute read
What You Need to Know
- The U.S. Securities and Exchange Commission issued a Wells notice to a blockchain company deeply rooted in gaming.
- CyberKongz claimed the notice would have “major implications for the entire web3 gaming industry.”
- An expert noted that new regulations would be retroactive on regulatory enforcement brought by the SEC.
The U.S. Securities and Exchange Commission has issued a Wells notice to CyberKongz, a blockchain company deeply rooted in gaming, regarding its alleged failure to register a token as a security. CyberKongz, which announced the action on X, has become the second gaming company in recent months to face regulatory scrutiny.
Andrew W. Balthazor of Holland & Knight in the Am Law 100 firm’s Miami office noted that the social media post was consistent with those of other crypto companies that are subject to potential regulatory actions “that they almost make it like a badge of honor within the industry and publicize that they are nearing the enforcement action ahead of an actual public filing.”
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