SEC charges company behind Stoner Cats NFT series with unregistered securities sale

SC2 will damage all NFTs in its possession or control. The SEC initially brought charges of unregistered securities sales charges versus an NFT company in August in its case versus Impact Theory. Magazine: Andy Warhol would have enjoyed (or potentially disliked) NFTs

Stoner Cats 2 LLC (SC2), the business behind the Stoner Cats animated series, has agreed to a cease-and-desist order and other steps enforced by the United States Securities and Exchange Commission (SEC) after being charged with performing an unregistered offering of crypto asset securities in the form of nonfungible tokens (NFTs). According to the SEC, SC2 offered more than 10,000 NFTs for about $800 a piece. The sale took 35 minutes and occurred on July 27, 2021. Profits were used to money the series. The NFTs allowed purchasers to view the Stoner Cats animated series, which revolved around an elderly female and her felines taking in marijuana. The very first episode of six premiered two days after the NFT sale. A Stoner Cats promotion. Source: X (formerly Twitter) The Stoner Cats project was spearheaded by starlet Mila Kunis, who coordinated with established NFT creators. The series cast included Ashton Kutcher, Chris Rock, Dax Shepard, Gary Vaynerchuk, Jane Fonda, Michael Buble, Mila Kunis, Seth MacFarlane and Vitalik Buterin.Related: SEC chair concerns alerting to stars promoting crypto in the middle of latest enforcement actionThe SEC said in a declaration that SC2 marketing the possible secondary market for the NFTs and implied that the qualifications of the developers and prominence of the stars would cause the NFTs to increase in worth. The NFTs were set up so that SC2 got a 2.5% royalty on every secondary sale. There were at least secondary 10,000 sales of the NFTs worth more than $20 million, the SEC said.SEC settled its very first enforcement action including PFP NFTs. SEC declares each distinctively generated “Stoner Cat” itself to be a “crypto possession security in the form of a non-fungible token.” Mechanics of the offering resembled most popular PFP jobs. A few of my takeaways …/ 1– Mike Selig (@MikeSeligEsq) September 13, 2023

According to the SEC, SC2 sold more than 10,000 NFTs for about $800 a piece. The series cast consisted of Ashton Kutcher, Chris Rock, Dax Shepard, Gary Vaynerchuk, Jane Fonda, Michael Buble, Mila Kunis, Seth MacFarlane and Vitalik Buterin.Related: SEC chair problems cautioning to celebs promoting crypto in the middle of latest enforcement actionThe SEC stated in a statement that SC2 marketing the potential secondary market for the NFTs and suggested that the credentials of the creators and prominence of the actors would trigger the NFTs to rise in worth. There were at least secondary 10,000 sales of the NFTs worth more than $20 million, the SEC said.SEC settled its very first enforcement action involving PFP NFTs.