SEC Takes Action Against Stoner Cats NFT Creator
The makers of “Stoner Cats,” Stoner Cats 2 LLC, have been accused of selling over 10,000 NFTs for $800 apiece without properly registering them as securities backed by cryptoassets. On July 27, 2021, the sale, which collected money for the series and featured an old woman and her feline pets doing in cannabis-related activities, took place in just 35 minutes. Two days following the NFT sale, the first episode aired.
The Stoner Cats project was led by actress Mila Kunis, who worked with seasoned NFT creators. Famous actors like Ashton Kutcher, Chris Rock, Dax Shepard, Gary Vaynerchuk, Jane Fonda, Michael Bublé, Seth MacFarlane, and Vitalik Buterin were among the cast members.
The SEC charged SC2 with advertising NFTs as investments by asserting that the presence of well-known actors would raise their value. Over $20 million in secondary transactions were the result of the 2.5% royalty SC2 got on secondary NFT sales. In retaliation, SC2 consented to an injunction, a $1 million civil fine, and a fair fund to compensate investors. They have not confirmed nor disputed the charges, but they have vowed to destroy all NFTs under their ownership or control.
(With inputs from Shikha Singh)
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