CyberKongz Ends SEC Investigation, Announces Rebranding

The SEC has ended its investigation into CyberKongz, a large NFT gambling site. CyberKongz and its developer were cleared after a 27-month investigation

The SEC has closed its case against CyberKongz, a large NFT gambling site, and its developer.

What Happened

CyberKongz and its developer were investigated for 27 months before the case was dropped in April 2025.

CyberKongz was founded in 2023 and became known for using ERC-20 tokens in blockchain gaming.

The case was part of a broader investigation by the SEC into the cryptocurrency industry.

The project was notified of regulatory action in December 2024 with a Wells notice.

CyberKongz contested the assertions made by the agency and provided technical details of its smart contracts to the SEC.

The CyberKongz team was able to persevere through 27 months of investigation.

The project’s founder, known as myoo_ck on X, spoke about the emotional and financial toll that the investigation had on the team.

However, they managed to pull through and continue working on new projects throughout the ordeal.

The CyberKongz members will be focusing on new tasks as they display an immense level of resilience, according to myoo_ck in his post.

The project will be undergoing a rebranding initiative, which will see strategic transformations to the organization.

The CyberKongz team aims to return to its core values by focusing more on artistic development in addition to community development.

The organization plans to share more information about its rebrand, which will include celebrating past achievements, during the upcoming months.

The CyberKongz project has achieved significant milestones within the NFT sector.

An NFT collection of profile pictures from the project achieved the biggest floor price that the market had ever seen.

The project became the first to connect tokens with NFTs while establishing open deep web3-connected 3D avatar models.

ERC721x smart contracts are a new security-enhanced project development milestone. The team’s game reached 8 million transactions during its release, surpassing MangaPlus by Shueisha with its custom Manga creation. The industry experienced wide-reaching influence of CyberKongz because of its recent developments.

The SEC’s recent decision will provide better clarity for operations in the Web3 sector. All blockchain gaming and NFT projects will reap advantages from the final decision in this case, according to CyberKongz. The team considers this advancement to be a significant step in meeting specific regulatory requirements.

The SEC has concluded multiple cryptocurrency investigations from the present administration by dismissing cases. This includes cases involving Coinbase (NASDAQ:COIN) and Kraken, in addition to other entities. The industry demonstrates potential to reduce regulatory barriers because of this existing regulatory pattern.

The creation of CyberKongz stemmed from artistic activities on the side. Myoo_ck mentioned that the community feedback transformed the project into a major enterprise. During the growth phase of the project, the founder was surprised as it exceeded expectations, but he now predicts additional advancements for the future.

The team encountered substantial hurdles. The combination of financial expenditures and regulatory oversight presented obstacles that threatened their ability to remain in business. These obstacles drove them to maintain their dedication to developing new projects.

The rebranding initiative will see the implementation of tested components that have previously achieved success. The CyberKongz organization will be upholding its fundamental values as it strives to enhance its product line.

The future of CyberKongz appears promising. The team is investing in community development and innovation, which opens up possibilities for expansion. The industry will be following the progress of the rebranding process.

Upcoming regulatory guidelines will likely be influenced by the current actions of the SEC. Clarification about NFT projects would facilitate the increased development of similar projects. The manner in which CyberKongz handled its situation could lead to the creation of new legal precedents for future cases.