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Commissioners Hester Peirce and Mark Uyeda of the US Securities and Exchange Commission (SEC) criticized the agency for its charges against Flyfish Club. According to a cease and desist <a href="https://www.sec.gov/files/litigation/admin/2024/33-11305.pdf" rel="noopener noreferrer nofollow">order</a> issued on September 16, the NFT-themed Flyfish Club restaurant was fined $750,000 for selling 1600 NFTs to US investors without registering as securities. However, the SEC commissioners justified it as a way for the NFT-themed restaurant to sell memberships, and thus, it didn’t trigger securities laws.<h2 id="header-0">Story Behind Flyfish’s NFTs</h2>Flyfish Club is the brainchild of VCR Group and is a members-only restaurant nestled in the heart of Manhattan&#39;s Lower East Side. During August 2021 and May 2022, it conducted an unregistered offering of crypto asset securities at two price points. The Flyfish NFT was priced at 2.5 ETH (~$8,400), and the Omakase NFT was priced at 4.25 ETH (~$14,300) and generated approximately $14.8 million.In an interview, Flyfish&#39;s principal revealed that the intent behind its <a href="https://cryptotale.org/what-are-utility-nfts-and-why-are-they-important/" rel="noopener noreferrer nofollow">utility-based NFT</a> project was to build a large business. It had plans to enlarge the restaurant with multiple clubs, ancillary offerings, and other social experiences.Unfortunately, the SEC alleged it as an unregistered sale, claiming that Flyfish led investors to expect profits from entrepreneurial and managerial expertise. In return, the club did not deny the accusation and agreed to pay $750,000 for the settlement. Also, the club consented to destroy all the remaining Flyfish NFTs in its possession and not accept future royalties from the sales of NFTs.<a href="https://cryptotale.org/sec-commissioners-slam-agency-in-flyfish-club-settlement/" rel="noopener noreferrer nofollow">Read more on Cryptotale.</a>Visit the links for more information <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/cryptotalemedia" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/cryptotale_news" rel="noopener noreferrer nofollow">Telegram </a>| <a href="https://www.instagram.com/cryptotalenews/" rel="noopener noreferrer nofollow">Instagram </a>|

SEC Commissioners Slam Agency In Flyfish Club Settlement

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