NFT Project CyberKongz Receives Wells Notice From SEC, Vows to 'Defend' Web3 Gaming

Non-fungible token (NFT) project CyberKongz said it received a Wells notice from the U.S. Securities and Exchange Commission (SEC), becoming the latest in a growing

NFT project CyberKongz has revealed that it received a Wells notice from the U.S. Securities and Exchange Commission (SEC), making it the second known NFT brand to be targeted by the Wall Street regulator this year.

The SEC is reportedly alleging that CyberKongz violated securities laws in its sales of NFTs, similar to the allegations made against NFT marketplace OpenSea earlier this year.

CyberKongz, which is also a gaming platform, is now refusing to back down from the SEC's claims, arguing that the agency's stance would harm the entire Web3 gaming segment and that it will "defend against this stance for the wider space."

The NFT project's team has also been receiving support from the cryptocurrency community, with many calling out the SEC for its approach toward the NFT industry.