The US regulator SEC continues to increase its pressure on the cryptocurrency industry despite the Ripple and Grayscale cases that the court ruled against.
At this point, the SEC finally filed a lawsuit against Stoner Cats 2 LLC.
In its statement, the SEC alleged that Stoner Cats 2 LLC (SC2) failed to register crypto asset securities in the form of NFTs.
The SEC also said the company raised nearly $8 million from investors to fund an animated web series called Stoner.
The statement stated that the company accepted the SEC's cease and desist order and agreed to pay a $1 million fine.
“Stoner Cats 2 offered and sold more than 10,000 NFTs to investors for approximately $800 each on July 27, 2021.
However, the company did not register its crypto asset securities in the form of NFTs, violating the Securities Act of 1933 by offering and selling them to the public in an unregistered offering.
In response to this accusation, the company agreed to the SEC's cease and desist order and to pay a $1 million fine.
This penalty creates a fair fund to recover the money paid by investors who suffered losses in the NFT sale to purchase NFTs.
SC2 also agreed to destroy all NFTs in its possession or control and to post notice of the order on its website and social media channels.”