Credit: Rawpixel.com/Adobe Stock 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
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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