• CyberKongz received a Wells Notice from the SEC, raising concerns about its blockchain games and ERC-20 token activities.
  • CyberKongz plans to defend its actions and calls for clear regulatory guidelines to support NFT projects and innovation.

CyberKongz, a well-known NFT project, has announced that it has received a Wells notice from the U.S. Securities and Exchange Commission (SEC). This legal warning indicates the SEC’s intention to maybe take enforcement measures against the project.

Particularly in relation to the migration of Genesis Kongz contracts back in 2021, CyberKongz’s engagement with blockchain games and ERC-20 tokens seems to be the main issue of concern to the SEC. CyberKongz has stressed, meanwhile, that this relocation was a technical update to its infrastructure rather than a token sale.

This case is a focal point for the larger NFT ecosystem since the announcement comes at a period of increasing regulatory scrutiny on digital assets and NFTs is escalating.

CyberKongz has received a Wells Notice from the SEC.

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.

We have been suffering in silence for the last… pic.twitter.com/lc6hyzUPb0

— CyberKongz (@CyberKongz) December 16, 2024

CyberKongz Stands Firm Amid Legal Challenges 

CyberKongz is adamant in its position and intends to fiercely defend itself in spite of this approaching court fight. The initiative voiced dismay with the SEC’s strategy, claiming that many NFT enterprises find themselves in a perilous situation due to the absence of clear legislative direction.

CyberKongz wants to take advantage of this chance to fight for a more open and encouraging legal environment that acknowledges the particular features of NFT-based projects.

Meanwhile, according to CoinGecko , the floor price of its NFT collection decreased significantly by 12.6% over the last 24 hours to average 7.16 Ether.

On the other hand, CNF previously reported that another NFT project, Claynosaurz, has emerged as the second-largest Solana NFT collection.

Renowned for its outstanding 3D animated designs and industry accolades, Claynosaurz keeps growing its ecosystem by means of awards, strategic alliances, and creative mobile gaming projects spanning Web2 and Web3 audiences.