BAYC Creator Yuga Labs Faces Investigation From The SEC

SEC Investigation On Yuga Labs
ApeCoin Community And NFT Holders

According to Bloomberg, the U.S. Securities and Exchange Commission (SEC) is looking into Yuga Labs, the company behind the Bored Ape Yacht Club (BAYC) NFT collection, to see if sales of its digital assets are illegal under federal law. According to the source, some of Yuga Labs' NFTs are comparable to stocks, so they should be subject to the same regulations.

SEC Investigation On Yuga Labs

According to reports, the SEC has been looking into whether NFTs are securities since March. People who knew the situation at the time claimed that NFT developers and cryptocurrency exchanges were under investigation. The distribution of ApeCoins, the Ethereum-based governance and utility tokens utilized within the APE ecosystem, to holders of Bored Ape Yacht Club, Mutant Ape Yacht Club, and Bored Ape Kennel Club members is another matter that the SEC is investigating. The creation of the community-run ApeCoin DAO and the Ape Foundation coincided with the first announcement of the tokens in March.

ApeCoin Community And NFT Holders

The ApeCoin community received 62% of the fixed one billion-coin supply, including 15% airdropped to current NFT holders. The SEC is also investigating how ApeCoin was given to members of the Bored Ape Yacht Club and related NFTs. The investigation has not yet been made public, and it does not establish any wrongdoing on the part of Yuga Labs.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

SEC Yuga Labs BAYC

BAYC Creator Yuga Labs Faces Investigation From The SEC

Usha Yadav

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.