The headquarters of the U.S. Securities and Exchange Commission (SEC) are seen in Washington, July 6, 2009. REUTERS/Jim Bourg/File Photo Acquire Licensing Rights
Sept 13 (Reuters) – The creator of the favored Stoner Cats animated net sequence pays a $1 million civil fantastic to settle U.S. Securities and Exchange Commission costs it carried out an unregistered providing of crypto asset securities by promoting non-fungible tokens, the regulator stated on Wednesday.
Stoner Cats 2 LLC didn’t admit or deny wrongdoing in settling costs it illegally raised $8.2 million in July 2021 by promoting 10,320 NFTs for about $800 every, which bought out in 35 minutes.
It additionally agreed to destroy all NFTs in its possession. NFTs check with tokens that symbolize an asset comparable to a bit of digital artwork.
A lawyer for Stoner Cats didn’t reply instantly to requests for remark.
Wednesday’s settlement is the SEC’s second in its crackdown on NFTs, following a settlement with Impact Theory LLC final month.
The SEC is concentrating on companies concerned within the manufacturing or buying and selling of digital property, saying they symbolize securities akin to shares or bonds that have to be overseen by the SEC.
Stoner Cats is an grownup animated sequence about home cats that grow to be sentient after being uncovered to their proprietor’s medical marijuana, which is used to alleviate early Alzheimer’s signs.
Six episodes had been launched from July 2021 to December 2022, and the solid included a number of well-known actors like Jane Fonda, Mila Kunis, Ashton Kutcher, Seth MacFarlane and Chris Rock.
The NFTs offered holders with unique access to observe “Stoner Cats” on-line. Investors had been informed the NFTs had been like a ticket, and that “the extra profitable the present, the extra profitable your NFT” might be.
“Stoner Cats wished all the advantages of providing and promoting a safety to the general public however ignored the authorized tasks that include doing so,” SEC official Carolyn Welshans stated in a press release.
Two of the 5 SEC commissioners, each Republicans, opposed the motion, saying in joint assertion that the regulator ought to as an alternative lay out “some clear tips for artists and different creators who need to experiment with NFTs”.
Reporting by Jonathan Stempel and Chris Prentice in New York, modifying by Deepa Babington
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