SEC Threatens to Sue CyberKongz NFT Platform

The CyberKongz team commented on the situation, suggesting that the regulator is referring to the 2021 event when the Genesis Kongz NFT migration occurred. The project representatives emphasize that this was not an initial sale of tokens, but only a technical transfer of contracts. In addition, the platform has been developing independently for two years, with virtually no funding and on a minimal budget.

CyberKongz views the SEC's actions as part of the Biden administration's anti-cryptocurrency strategy. According to the team, the current measures are aimed at suppressing the growth of the Web3 sector. The project expressed hope that with the arrival of the Donald Trump administration, regulation will become less aggressive and more fair.

CyberKongz representatives also criticized the regulator for a lack of understanding of blockchain technologies and an unfair interpretation of the principles of smart contracts. “This approach can negatively affect the entire blockchain industry and gaming projects in particular. We consider the accusations unfounded and will continue to defend the right of NFT projects to exist,” CyberKongz said.

This is not the first time that the SEC has taken similar actions against NFT platforms. In August this year, the regulator accused OpenSea of ​​trading unregistered securities. OpenSea CEO Devin Finzer warned that increased pressure on the NFT market could force creators of collectible tokens to leave the digital art industry.

The situation around CyberKongz and other platforms indicates a growing confrontation between the crypto community and regulators. Many market participants can only hope for a more flexible and progressive approach to regulation after the change of political administration.