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Stoner Cats NFT Sale Faces SEC Action

Stoner Cats 2 LLC faces SEC charges for unregistered NFT sales, impacting its animated series funding.
Published on 2023-09-13

SEC Action Against Stoner Cats 2 LLC

Stoner Cats 2 LLC (SC2), the creator of the "Stoner Cats" animated series, has been subjected to a cease-and-desist order by the United States Securities and Exchange Commission (SEC). This decision follows charges of conducting an unregistered offering of crypto-asset securities, specifically nonfungible tokens (NFTs).

NFT Sale Details

The SEC revealed that SC2 sold over 10,000 NFTs at approximately $800 each. This sale transpired rapidly, within 35 minutes, on July 27, 2021. The revenue generated from these NFT sales was utilized to fund the creation of the series.

Stoner Cats Animated Series

The NFTs provided buyers exclusive access to the "Stoner Cats" series. The storyline centers around an elderly woman and her cannabis-consuming cats. The first episode of the six-part series premiered just two days after the NFT sale concluded.

Implications of SEC Charges

These charges highlight the regulatory challenges facing NFT sales as they intersect with securities laws. The SEC's intervention serves as a reminder of the importance of compliance in the burgeoning NFT market.

Conclusion

The case of Stoner Cats underscores the intricate relationship between innovative funding methods and regulatory frameworks. As NFTs continue to gain popularity, adherence to legal standards remains crucial for creators and investors alike.

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