Ethereum

David Vance

Validity

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<p>Stuart Alderoty, Ripple's top lawyer, and David "JoelKatz" Schwartz, Ripple's CTO, <a href="https://twitter.com/s_alderoty/status/1702147033879265477">have voiced</a> skepticism over the U.S. Securities and Exchange Commission's (SEC) recent settlement with Stoner Cats 2 LLC.&nbsp;</p>
<p>The SEC has accused Stoner Cats of conducting an offering of non-fungible tokens (NFTs) without proper registration. The funds raised were purportedly intended for the production of an animated web series.</p>
<h2 id="ripple-s-top-brass-takes-aim-at-the-sec">Ripple's top brass takes aim at the SEC &nbsp;&nbsp;</h2>
<p><a href="https://u.today/ripples-general-counsel-alderoty-comments-on-bitzlato-case">Stuart Alderoty</a> took to Twitter to question the binding nature of the SEC's recent settlement with Stoner Cats, describing such a resolution as "binding on no one" and potentially just a "PR stunt." He argued that when seriously challenged in court, the SEC often loses its cases.&nbsp;</p>
<p>Similarly, David Schwartz <a href="https://twitter.com/JoelKatz/status/1702152913848762683">chimed in</a>, noting that settling with the SEC for a few million dollars now may only lead to a pyrrhic victory later, costing double-digit millions.&nbsp;</p>
<p>His statement implies that such settlements shouldn't necessarily be seen as a win for any party involved.</p>
<h2 id="cats-out-of-the-bag">Cats out of the bag</h2>
<p>Stoner Cats 2 LLC quickly sold thousands of NFTs at a significant price each, accumulating a substantial sum of money.&nbsp;</p>
<p>Actress Mila Kunis, along with other high-profile figures like Ashton Kutcher and Ethereum founder <a href="https://u.today/ethereum-founder-addresses-x-hacking-incident">Vitalik Buterin</a>, were involved in the controversial project.&nbsp;</p>
<p><a href="https://u.today/sec-chair-gary-genslers-hearings-crypto-highlights-details">The SEC</a> contends that buyers were led to believe their NFTs could appreciate in value, thus qualifying them as securities. The NFT project has agreed to fork out a $1 million fine.</p>

Ripple's Top Lawyer Questions Validity of SEC's Stoner Cats Settlement

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