NFT project CyberKongz claims to have received Wells notice from the US SEC

BlockBeats news, on December 17, the NFT project CyberKongz posted on the X platform that it had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC). The team said: "We have been silently enduring for the past two years since we first received contact from the SEC. Throughout the process, they showed a complete lack of understanding of blockchain technology, resulting in unfair accusations and inaccurate information. CyberKongz is a project rooted in the field of games. The SEC Enforcement Division has made very worrying remarks to us that if the token (ERC-20) is not registered as a security, it cannot be combined with blockchain games. This kind of speech will have a significant impact on the entire web3 game industry, and we will oppose this position in a wider field."

BlockBeats Note: Wells Notice is a standard procedure in the regulatory field, especially in reviewing potential illegal activities of cryptocurrency-related companies. When a company receives a Wells Notice, it may be subject to sanctions, penalties, or other forms of penalties. In some cases, a company may need to suspend certain operations. If the SEC decides to pursue enforcement actions after the Wells Notice, it may even freeze a company's assets or file formal charges against the company in federal court. These actions would mark the beginning of a lengthy legal process in which the company would have the opportunity to present a defense.