SEC goes after Stoner Cats NFT show known for Ashton Kutcher and Jane Fonda
The Securities and Exchange Commission charged Stoner Cats 2 LLC with conducting an unregistered offering of nonfungible tokens that brought in $8 million from investors. "Here, the SEC’s order finds that Stoner Cats marketed its knowledge of crypto projects, touted that the price of their NFTs could increase and took other steps that led investors to believe they would profit from selling the NFTs in the secondary market," Grewal said. "Regardless of whether your offering involves beavers, chinchillas or animal-based NFTs, under the federal securities laws, it’s the economic reality of the offering – not the labels you put on it or the underlying objects – that guides the determination of what’s an investment contract and therefore a security," Gurbir S. Grewal, the SEC’s director of its enforcement division, said in a statement on Wednesday. Stoner Cats 2, or SC2, sold out more than 10,000 NFTs for about $800 each in just 35 minutes. Before and after the NFTs were sold to the public, SC2 marked certain benefits of owning them, including the ability to resell the NFTs on the secondary market, the SEC said.
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