{"id":43495,"date":"2024-12-17T14:58:51","date_gmt":"2024-12-17T14:58:51","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/cyberkongz-receives-concerning-rhetoric-in-wells-notice-from-the-sec\/"},"modified":"2024-12-17T14:58:51","modified_gmt":"2024-12-17T14:58:51","slug":"cyberkongz-receives-concerning-rhetoric-in-wells-notice-from-the-sec","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/cyberkongz-receives-concerning-rhetoric-in-wells-notice-from-the-sec\/","title":{"rendered":"CyberKongz receives \u201cconcerning rhetoric\u201d in Wells notice from the SEC"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/10\/Crypto.com-sues-the-US-SEC-after-Wells-notice-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/10\/Crypto.com-sues-the-US-SEC-after-Wells-notice-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/10\/Crypto.com-sues-the-US-SEC-after-Wells-notice-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/10\/Crypto.com-sues-the-US-SEC-after-Wells-notice-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li aria-level=\"1\">CyberKongz said it has been \u201csuffering in silence for the last two years\u201d since being contacted by the US SEC<\/li>\n<li aria-level=\"1\">The SEC has an issue with the \u201csale\u201d of its Genesis Kongz NFTs in April 2021; however, CyberKongz said this was a contract migration and not a token sale<\/li>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">CyberKongz said the Biden administration is attempting last-minute enforcement action<\/span><\/li>\n<\/ul>\n<p>CyberKongz, a non-fungible token (NFT) platform, has received a Wells notice from the US Securities and Exchange Commission (SEC).<\/p>\n<p>In a post on <a href=\"https:\/\/x.com\/CyberKongz\/status\/1868746903053127941\" target=\"_blank\" rel=\"noopener\">X<\/a>, CyberKongz said that they have \u201cbeen suffering in silence for the last two years, ever since we first received contact from the <a href=\"https:\/\/coinjournal.net\/search\/SEC\">SEC<\/a>,\u201d adding that it had received some \u201cconcerning rhetoric\u201d that an ERC-20 token can\u2019t be issued with a blockchain game without being registered as a security.<\/p>\n<p>\u201cThis discourse would have major implications for the entire web3 gaming industry, and we will defend against this stance for the wider space,\u201d wrote CyberKongz.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">CyberKongz has received a Wells Notice from the SEC.<\/p>\n<p>We are extremely disappointed at the approach the SEC has taken towards us, but we are going to stand up and fight for a brighter future that holds more clarity for NFT projects.<\/p>\n<p>We have been suffering in silence for the last\u2026 <a href=\"https:\/\/t.co\/lc6hyzUPb0\">pic.twitter.com\/lc6hyzUPb0<\/a><\/p>\n<p>\u2014 CyberKongz (@CyberKongz) <a href=\"https:\/\/twitter.com\/CyberKongz\/status\/1868746903053127941?ref_src=twsrc%5Etfw\">December 16, 2024<\/a><\/p>\n<\/blockquote>\n<p>By issuing a Wells notice, the SEC believes there may be securities law violations and is preparing to take action against the platform. One of the issues the SEC has with CyberKongz is the \u201csale\u201d of its Genesis Kongz NFTs in April 2021. According to CyberKongz, this was a contract migration and not a sale.<\/p>\n<p>\u201cIf they cannot distinguish between a primary sale and a contract migration, what hope do we currently have for a clear regulatory pathway going forward?\u201d<\/p>\n<p>CyberKongz added that the Biden administration is attempting enforcement action at the last minute, adding:<\/p>\n<p>\u201cWe hope that the new administration puts an end to this unjustness on our industry, but until then we will fight for NFT projects on all chains.\u201d<\/p>\n<p>Earlier this year, crypto exchange <a href=\"https:\/\/coinjournal.net\/news\/coinbase-receives-wells-notice-from-sec\/\">Coinbase received a Wells notice<\/a> from the SEC followed by <a href=\"https:\/\/coinjournal.net\/news\/opensea-gets-wells-notice-from-sec\/\">OpenSea<\/a>, an NFT marketplace, and <a href=\"https:\/\/coinjournal.net\/news\/immutable-becomes-the-latest-to-receive-a-wells-notice-from-the-sec-over-alleged-securities-laws\/\">blockchain gaming platform Immutable<\/a>.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/cyberkongz-receives-concerning-rhetoric-in-wells-notice-from-the-sec\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) CyberKongz said it has been \u201csuffering in silence for the last two years\u201d since being contacted by the US SEC The SEC has an issue with the \u201csale\u201d of its Genesis Kongz NFTs in April 2021; however, CyberKongz said this was [&hellip;]<\/p>\n","protected":false},"author":3947362367,"featured_media":43496,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/43495"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362367"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=43495"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/43495\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/43496"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=43495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=43495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=43495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}