SEC reaches out to gaming firm CyberKingz with Wells announcement, conflict over ‘sale’ of GenesisKingz

NFT project Cyber ​​Kongz has announced that it has received a notice of wells from the US Securities and Exchange Commission (SEC). A Wells notice is usually issued when the SEC believes a company has violated securities laws, prompting enforcement action.

The group behind Cyber ​​Cong said they were disappointed with the SEC's approach, saying the regulator showed a lack of understanding of blockchain technology. They argue that this has led to false accusations and confusion about their project.

CyberKongz has been dealing with the SEC for over two years with the most recent issue surrounding the combination of ERC-20 token and blockchain gaming. CyberKongz has pledged to fight this position not only for their own project, but for the wider NFT and blockchain gaming community. “We have been suffering in silence for the past two years since we first contacted the SEC,” he said.

A key point of contention between the SEC and Cyber ​​Cong involves the “sale” of Genesis Cong in April 2021. The CyberKingz team explains that this is actually a contract migration, not a sale. They argue that if the SEC fails to distinguish between a principal sale and a contract migration, it will threaten the clarity of regulatory guidelines for digital assets moving forward.

The CyberCongress group also expressed concern that the current administration may be pushing an anti-crypto agenda. However, they are positive that the new administration will bring more fairness to the regulatory landscape.

In a statement, CyberKingz expressed their solidarity with other leaders in the space, such as Brian Armstrong, Devin Finzer and Hayden Adams, as well as those fighting for clear regulations. “For the CyberKingz community, this is the beginning of a new beginning. He concluded, “We suffer in silence and work in fear without our burdens.”