The animated series Stoner Cats is making headlines, but not for its hilarious portrayal of rascally felines indulging in a little herb. Nope, it’s more about the legal fun and games it got into!
What Went Down with Stoner Cats 2 LLC
The United States Securities and Exchange Commission (SEC) decided to crash the Stoner Cats party. They issued a cease-and-desist order against Stoner Cats 2 LLC (SC2), claiming they conducted an unregistered offering of crypto-asset securities via non-fungible tokens (NFTs). In layman’s terms, they were doing some shady business with those digital cat collectibles.
The Numbers Behind the NFTs
SC2 sold a whopping over 10,000 NFTs for around $800 each during a lightning-fast sale that wrapped up in just 35 minutes on July 27, 2021. Talk about a cat-astrophic rush! These NFTs didn’t just sit there looking cute; they allowed owners to watch a series focusing on an elderly woman and her cannabis-loving cats. The show premiered shortly after the NFT sale, launching just two days later.
Star-Studded Cast and Creative Minds
The project was no small beans, as it was led by actress Mila Kunis and backed by other notable creators in the NFT realm. The voice cast included some heavy hitters like Ashton Kutcher, Chris Rock, Dax Shepard, and even Vitalik Buterin himself. You know it’s a party when Buterin shows up!
SEC’s Charges – The Fine Print
The SEC’s hogwash didn’t stop at telling SC2 to halt! According to the regulator, SC2 peddled these NFTs with a sprinkle of “they’ll be worth much more later” magic. They mentioned how the fancy cast and creators would lead to sky-high prices in the future. As a cherry on top, SC2 pocketed a neat 2.5% royalty from every secondary sale. The SEC revealed that there were over 10,000 secondary sales that raked in more than $20 million. Ka-ching!
Consequences and Repercussions
So what’s next for SC2? Besides the cease-and-desist, they’re looking at paying a civil penalty of $1 million. Sounds like a lot of catnip money, right? They’re also establishing a fair fund to reimburse those “injured investors” and will be required to destroy any NFTs in their possession. Talk about a cat fight, but SC2 did not admit to or deny any wrongdoing during this dumpster fire of a legal saga.
What’s the Big Picture?
This incident isn’t just a blip on the radar; it marks a significant enforcement action by the SEC regarding NFTs, which some believe are the new Wild West of investment. As regulations catch up with charismatic celebs and their trendy buzzwords, only time will tell how these newsworthy paws will likely affect the digital collectibles space.
So if anyone offers you a token with a furry face on it, maybe give it a second thought!
