Theta Network

Impact

Perry

<div class="cryptonews"> 
 <p class="is-style-lead">The Securities and Exchange Commission (SEC) now claims actress Mila Kunis’ “Stoner Cats” raised $8 million from <a rel="dofollow" title="selling" href="https://thebittimes.com/tag/selling.html">selling</a> <a rel="dofollow" title="unregistered" href="https://thebittimes.com/tag/unregistered.html">unregistered</a> <a rel="dofollow" title="securities" href="https://thebittimes.com/tag/securities.html">securities</a> in more than one US state.</p> 
 <p>In a press release on Sep. 13, the SEC said Stoner Cats 2 LLC (SC2) sold 10,000 non-fungible tokens (NFTs) in 35 minutes and raised over $8 million in the process. </p> 
 <p>The project failed to register these offerings which qualify as investment contracts, the SEC said citing the Howey test.</p> 
 <p>The regulator further explained that “Stoner Cats” led investors to expect returns from secondary sales, suggesting that a successful animated series could increase the value of the NFTs. </p> 
 <p>This points to how “Stoner Cats” was marketed.</p> 
 <p>“Stoner Cats” <a rel="dofollow" title="creators" href="https://thebittimes.com/tag/creators.html">creators</a> agreed to a cease-and-desist order without admitting or denying fault. </p> 
 <p>The PFP project will also pay $1 million in civil penalties within 14 days.&nbsp;</p> 
 <p>Launched in July 2021, “Stoner Cats” debuted as an NFT project featuring a web series animated by Mila Kunis’ studio Orchard Farm Productions. </p> 
 <p>Kunis voiced a character in the cartoon show alongside husband Ashton Kutcher and Ethereum co-founder Vitalik Buterin.</p> 
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 <p>In terms of marketing and sales approach, both of which were significant aspects in the SEC’s charges, “Stoner Cats” initiated its launch in a manner resembling Initial coin offerings (ICOs) from 2017. </p> 
 <p>It’s worth noting that several other NFT projects adopted a similar approach. They sold NFTs while committing to fund their development roadmaps through these fundraisers.</p> 
 <p>The recent settlement involving “Stoner Cats” could potentially foreshadow legal actions against other NFT projects. </p> 
 <p>Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, also hinted at the possibility of forthcoming lawsuits targeting similar projects.</p> 
 <blockquote class="wp-block-quote"> 
  <p>Regardless of whether your offering involves beavers, chinchillas, or animal-based NFTs, under the federal securities laws, it’s the economic reality of the offering – not the labels you put on it or the underlying objects – that guides the determination of what’s an investment contract and therefore a security.&nbsp;</p> <cite>Gurbir S. Grewal, Director of the SEC’s Division of Enforcement</cite>
 </blockquote> 
 <p>In August 2023, the SEC charged Impact Theory, LLC with offering illegal <a rel="dofollow" title="securities" href="https://thebittimes.com/tag/securities.html">securities</a> in the form of NFTs. </p> 
 <p>NFT proponents might argue that the two cases highlight uncertainty regarding how existing securities laws apply to blockchain-based digital collectibles.</p> 
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/sec-charges-stoner-cats-nft-creators-for-selling-unregistered-securities-tbt62659.html">https://thebittimes.com/sec-charges-stoner-cats-nft-creators-for-selling-unregistered-securities-tbt62659.html</a></p>

SEC charges ‘Stoner Cats’ NFT creators for selling unregistered securities

TheBitTimes

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