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The creator of animated sequence Stoner Cats, which featured actors Mila Kunis and Ashton Kutcher, agreed to pay $1 million to settle U.S. Securities and Trade Fee costs that it supplied NFTs that had been actually unregistered securities.
Stoner Cats 2 LLC was charged with illegally elevating about $8 million from traders to finance the web-based sequence by way of the sale of greater than 10,000 nonfungible tokens at about $800 every within the span of 35 minutes on July 27, 2021, the SEC mentioned in a press release Wednesday.
The entity didn’t admit or deny any wrongdoing as a part of the settlement.
The order discovered that each earlier than and after the NFTs had been bought, Stoner Cats 2’s advertising and marketing highlighted particular advantages of possession, together with the choice to resell them within the secondary market, the company mentioned.
The settlement was the second motion in about two weeks by the SEC in opposition to an NFT issuer for providing unregistered securities.
“Stoner Cats wished all the advantages of providing and promoting a safety to the general public however ignored the authorized obligations that include doing so,” Carolyn Welshhans, affiliate director of the SEC’s Residence Workplace, mentioned in a press release.
Skadden, Arps, Slate, Meagher & Flom LLP, which represented Stoner Cats 2, declined to remark.
So as to look at Stoner Cats, which additionally featured actor Chris Rock, and Ethereum co-founder Vitalik Buterin, viewers needed to buy the present’s unique NFT art work.
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