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US regulator fines Stoner Cats creator for offering NFTs

  • Reuters avatar Reuters · Sep 13, 2023
Key points

The creator of the Stoner Cats web series will pay a $1 million civil fine to settle charges by the SEC that it conducted an unregistered offering of crypto asset securities by selling non-fungible tokens (NFTs).

Stoner Cats illegally raised $8.2 million by selling 10,320 NFTs for about $800 each.

The company has agreed to destroy all NFTs in its possession.

This is the second settlement by the SEC related to NFTs, as they crack down on firms involved in the production or trading of digital assets.

The creator of the popular Stoner Cats animated web series will pay a $1 million civil fine to settle U.S. Securities and Exchange Commission charges it conducted an unregistered offering of crypto asset securities by selling non-fungible tokens, the regulator said on Wednesday.

Stoner Cats 2 LLC did not admit or deny wrongdoing in settling charges it illegally raised $8.2 million in July 2021 by selling 10,320 NFTs for about $800 each, which sold out in 35 minutes.

It also agreed to destroy all NFTs in its possession. NFTs refer to tokens that represent an asset such as a piece of digital art.

A lawyer for Stoner Cats did not respond immediately to requests for comment.

Wednesday's settlement is the SEC's second in its crackdown on NFTs, following a settlement with Impact Theory LLC last month.

The SEC is targeting…

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The creator of the popular Stoner Cats animated web series will pay a $1 million civil fine to settle U.S. Securities and Exchange Commission charges it conducted an unregistered offering of crypto asset securities by selling non-fungible tokens, the regulator said on Wednesday.

Stoner Cats 2 LLC did not admit or deny wrongdoing in settling charges it illegally raised $8.2 million in July 2021 by selling 10,320 NFTs for about $800 each, which sold out in 35 minutes.

It also agreed to destroy all NFTs in its possession. NFTs refer to tokens that represent an asset such as a piece of digital art.

A lawyer for Stoner Cats did not respond immediately to requests for comment.

Wednesday's settlement is the SEC's second in its crackdown on NFTs, following a settlement with Impact Theory LLC last month.

The SEC is targeting…