The whole NFT scene is a little rough right now.
And Bored Ape Yacht Club’s creator, Yuga Labs, is faring even worse than their competitors – at least legally.
According to Bloomberg, the Securities and Exchange Commission is inquiring as to whether the Bored Ape Yacht Club violated federal law.
The investigation is probing the possibility that a few of the NFTs sold by Yuga are similar to securities and whether or not they should follow similar rules.
In addition, the SEC is looking into how ApeCoin was distributed to owners of the BAYC and their associated NFTs.
Yuga said of the investigation in a statement, “It’s well-known that policymakers and regulators have sought to learn more about the novel world of web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem. As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way. ”
It should be noted that just because there’s an investigation doesn’t mean that Yuga engaged in misconduct.
CRAZY how much money this NFT design has made!
NFTs are a scam. Hey let me sell you a drawing of a monkey.