Federal regulators are reportedly investigating the creators of the Bored Ape Yacht Club (BAYC) collection of non-fungible tokens (NFTs) for possible violations of federal law while selling digital assets. .
Citing an unnamed source familiar with the matter, Bloomberg report The U.S. Securities and Exchange Commission (SEC) is investigating Yuga Labs to determine whether some of its NFTs are comparable to stock, which requires compliance with disclosure rules.
In a statement, the Miami-based company said it would cooperate with any investigation.
“It is well known that policy makers and regulators are eager to learn more about the new world of the Web3. We would like to partner with regulators.As a leader in this field, Yuga is committed to cooperating fully with any inquiries.”
Yuga Lab’s cartoon ape NFTs often fetch high prices on the market, making owning these digital assets something of a status symbol. Last year, basketball icon Stephen Curry purchased his BAYC NFT with his 55 ETH, worth approximately $180,000 at the time of purchase.
Bloomberg also reports that the SEC is investigating the distribution of ApeCoin (APE), a governance and utility token for the BAYC community and related communities. Regulators are investigating the possibility that crypto assets are securities.
At the time of writing, APE is trading at $4.70, down 8.16% over the past 24 hours.
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