SEC Charges Celebrity-Backed Stoner Cats NFT Creators for Unregistered Securities Sale, Leading to NFT Ban and $1 Million Fine
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The SEC charged the creators of the Stoner Cats NFT project with selling unregistered securities, resulting in the NFTs being banned from major marketplaces like OpenSea, Rarible, and Blur.
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Stoner Cats was created by actress Mila Kunis and featured celebrity voice actors. The NFTs provided access to an animated series.
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The project sold 10,420 NFTs in July 2021 for over $8 million. Secondary sales exceeded $20 million.
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The creators settled with the SEC, agreeing to pay a $1 million fine and destroy any remaining NFTs in their possession.
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Prices spiked after the news but have since settled. The NFTs can still be traded on some smaller marketplaces.