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NFT collection CyberKongz has been issued with a Wells Notice by the SEC, as the independent federal government agency announced its intentions to pursue enforcement.  Late on Monday (Dec. 16), CyberKongz confirmed the development with the project said to be “extremely disappointed” at the approach taken by the SEC.  “We have been suffering in silence for the last two years, ever since we first received contact from the SEC,” it said in the statement.  “Throughout the entire process they have showcased a complete lack of understanding of blockchain technologies that has resulted in unjust accusations and information inaccuracies,” it added.  A Wells notice is a formal communication issued by the SEC, with the letter notifying an entity that the regulator has conducted a preliminary investigation and is considering further enforcement action. CyberKongz has the right of 30 days to submit a response. CyberKongz has received a Wells Notice from the SEC. We are extremely disappointed at the approach the SEC has taken towards us, but we are going to stand up and fight for a brighter future that holds more clarity for NFT projects. We have been suffering in silence for the last… pic.twitter.com/lc6hyzUPb0 — CyberKongz (@CyberKongz) December 16, 2024 Confidence in a new dawn under the incoming Trump administration The artist Myoo was prominent in the launch of CyberKongz in March 2021, with 1000 unique NFTs billed as the Genesis Collection.  Myoo was the designer of the 34×34 pixelated Gorilla images, specifically set up as profile pictures (PFPs). CyberKongz is alleging the SEC is presiding over a “perplexing interpretation of smart contracts.” It underlined one of the agency’s key concerns, the ‘sale’ of Genesis Kongz in April 2021, was actually a contract migration.  The project has poured doubt on how a clear regulatory pathway can be maintained if the SEC cannot clearly distinguish between a primary sale and a contract migration.  This is the latest salvo from the SEC toward gaming tokens after the commission recently dispatched a Wells Notice to Web3 gaming firm, Immutable. There are some suggestions that gaming tokens could be in trouble with the agency, but looking at the bigger picture, it is only a matter of weeks until Donald Trump returns to the White House, with a new dawn slated to emerge for the industry. Image credit: Via Ideogram The post Another blow for tokens as CyberKongz receives SEC Wells Notice appeared first on ReadWrite.