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HomeCrypto NewsMarketSEC Reportedly Probing Bored Ape Yacht Club (BAYC) Creators Over Securities Laws...

SEC Reportedly Probing Bored Ape Yacht Club (BAYC) Creators Over Securities Laws Violation 

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A source said the SEC is investigating whether Yuga Labs violated U.S securities rules via BAYC offerings. 

The United States Securities and Exchange Commission (SEC) is reportedly investigating Yuga Labs, the company behind the development of the famous non-fungible token (NFT) Bored Ape Yacht Club (BAYC)

Sources familiar with the matter told Bloomberg that the U.S SEC is scrutinizing the project to determine whether it violated the country’s securities laws during the offering of BAYC. According to the source, the financial regulator is examining whether the Yuga Labs’ NFTs are akin to traditional financial instruments – stock – which would require the company to follow the same disclosure rules. 

The source requested that his identity should not be revealed because the ongoing investigation is still private. It is noteworthy that since the creation of Yuga Labs, the company has not been indicted of any wrongdoings. 

The recent development does not automatically imply that the Securities and Exchange Commission will slam a lawsuit against Yuga in the coming weeks. 

However, if the SEC is convinced that Yuga Labs breached its rules, the agency may gather as much evidence as possible before officially charging the company. 

Commenting on the development, Yuga Labs said in a statement published by Bloomberg: 

“It’s well-known that policymakers and regulators have sought to learn more about the novel world of web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem,” adding that “As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”

At press time, a spokesperson for the U.S. SEC declined to comment on the development. Per the source, the SEC is also investigating whether ApeCoin (APE), a cryptocurrency distributed to BAYC holders, is a security. 

 

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Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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