SEC charges ‘Stoner Cats’ NFT creators for selling unregistered securities
The Securities and Exchange Commission (SEC) now claims actress Mila Kunis’ “Stoner Cats” raised $8 million from selling unregistered securities in more than one US state. In a press release on Sep. 13, the SEC said Stoner Cats 2 LLC (SC2) sold 10,000 non-fungible tokens (NFTs) in 35 minutes and raised over $8 million in the process. The project failed to register these offerings which qualify as investment contracts, the SEC said citing the Howey test. The regulator further explained that “Stoner Cats” led investors to expect returns from secondary sales, suggesting that a successful animated series could increase the value of the NFTs. This points to how “Stoner Cats” was marketed. “Stoner Cats” creators agreed to a cease-and-desist order without admitting or denying fault. The PFP project will also pay $1 million in civil penalties within 14 days. Launched in July 2021, “Stoner Cats” debuted as an NFT...