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    <p>The would-be creator of an animated web series called Stoner Cats has agreed to pay a $1 million penalty after the Securities and Exchange Commission (SEC) formally charged it with offering unregistered crypto assets in the form of more than 10,000 NFTs.</p> 
    <p>Stoner Cats 2 LLC (SC2) used the proceeds from its Stoner Cats NFTs — each priced at $800 — to fund the series centered around a group of felines that had been exposed to medical marijuana. The show featured big-name actors, including Mila Kunis (who also produced), Ashton Kutcher, and Chris Rock, and aired six episodes that were available only to those who had purchased the tokens.</p> 
    <p>SC2 lured investors with a slick marketing campaign that talked up the company’s Hollywood credentials, its knowledge of the crypto market, and promises of hefty resale values.&nbsp;</p> 
    <p>The firm also configured the project — which sold out in 35 minutes — to <strong>provide it with 2.5% royalty for each <a rel="dofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>ondary market transaction</strong>. Buyers eventually spent more than $20 million in at least 10,000 transactions.</p> 
    <p>In its order, the <a rel="dofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a> said: “Regardless of whether your offering involves beavers, chinchillas or animal-based <a rel="dofollow" title="NFT" href="https://thebittimes.com/tag/nft.html">NFT</a>s, under the federal <a rel="dofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urities 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 <a rel="dofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urity.</p> 
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       SEC says NFTs are securities in landmark case
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    <p><em>Read more: Logan Paul fight can make NFT holder $300K as CryptoZoo victims left on ice</em></p> 
    <p>“Here, the SEC’s order finds that Stoner Cats marketed its knowledge of crypto projects, touted that the price of their NFTs could increase and took other steps that <strong>led investors to believe they would profit from selling the NFTs in the secondary market</strong>.</p> 
    <p>“It’s therefore hardly surprising, as the order finds, that Stoner Cats sold its entire supply of NFTs in just 35 minutes, generating proceeds of over $8 million, most of which were then resold – not held as collectibles — in the secondary market within months.”</p> 
    <p>“Stoner Cats wanted all the benefits of offering and selling a <a rel="dofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urity to the public but ignored the legal responsibilities that come with doing so,” the regulator added.</p> 
    <p>SC2 has neither confirmed nor denied the <a rel="dofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>’s claims but it has, in addition to the $1 million payout, <strong>agreed to a cease and desist order and the setting up of a fund to return money to injured investors</strong>.</p> 
    <p>It has also agreed to destroy all Stoner Cat <a rel="dofollow" title="NFT" href="https://thebittimes.com/tag/nft.html">NFT</a>s in its possession.</p> 
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/creator-of-mila-kunis-backed-stoner-cats-series-pays-1m-to-settle-sec-charge-tbt62642.html">https://thebittimes.com/creator-of-mila-kunis-backed-stoner-cats-series-pays-1m-to-settle-sec-charge-tbt62642.html</a></p>

Creator of Mila Kunis-backed Stoner Cats series pays $1M to settle SEC charge

TheBitTimes

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