The next crypto market bull run has encountered another hurdle as the U.S. Securities and Exchange Commission and the Treasury Department target two pillars of the crypto ecosystem, Bored Ape Yacht Club and Bittrex.
The SEC is reportedly investigating Yuga Labs, the company behind BAYC, for possible violations of investor disclosure rules surrounding sales of its non-fungible tokens, while the Treasury Department’s Office of Foreign Assets Control (OFAC) and Financial Crimes Enforcement Network (FinCEN) fines crypto exchange Bittrex for sanctions violation.
Yuga Labs not sued by SEC (yet)
The SEC is still in the early stages of its probe into Yuga Labs. This company launched the hugely successful Bored Ape Yacht Club NFT collection and its associated metaverse elements. According to an individual familiar with the matter, the rub of the SEC’s investigation is whether certain NFTs resemble stocks and hence should follow similar disclosure rules. The federal agency is also looking into the distribution of ApeCoin, a crypto asset launched by Yuga Labs in March 2022, designed to be a spendable asset in the company’s Web3 ecosystem.
“It’s well-known that policymakers and regulators have sought to learn more about the novel world of web3. W
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