- Yuga Labs, Creator of Bored Ape Yacht under the SEC’s spotlight.
- SEC launched the investigation to determine if its rules are being infringed upon.
- We hope to partner with the industry and regulators to define the burgeoning ecosystem, says Yuga Lab spokesperson.
Yuga Labs, the creator of Bored Ape Yacht Club (BAYC), an NFT collection, came under the scrutiny of the Securities Exchange Commission (SEC). During an ongoing probe launched earlier this year by the SEC into the broader NFT market, BAYC drew the SEC’s attention.
Founder of 100xGem, Mr. Whale took to Twitter to inform his followers regarding the probe.
BREAKING:Bored-Ape Creator Yuga Labs Faces SEC Probe Over Unregistered Offerings #BAYC #NFT— Mr. Whale (@WhaleChart) October 11, 2022
Moreover, according to Bloomberg, the SEC launched the investigation in March this year to determine if crypto exchanges and creators of NFT infringed on any of the agency’s rules.
However, although the NFT club is neither accused of any illicit activity nor has any impending lawsuits, Bloomberg cited an anonymous source to say that the company’s NFTs and ApeCoin, a cryptocurrency-issued ApeCoin DAO, are under the spotlight.
While commenting on a popular crypto news platform, a spokesman for Yuga Lab said:
It’s well known that policymakers and regulators have sought to learn more about the novel world of Web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem.
Meanwhile, the crypto community took to Twitter to air their view in this regard. One user wrote in a post, “BAYC x SEC was always on the roadmap guys!”. At the same time, another stated, “SEC is shutting down BAYC & NFTs.”
Alternatively, another user who was inquisitive about the probe stated, “Curious where this heads to as it could redefine the whole NFT investment case and also restructure whole Web3 workflows”
Notably, the aforementioned user’s views complement the views of the Chairman of SEC, Gary Gensler.
In the Draft, FY22-26 Strategic Plan published in late August, Gensler said, “Technology and business models always are changing, and it is important for our agency to evolve in kind.”
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