CyberKongz NFT Project Exits US SEC Investigation

The United States Securities and Exchange Commission continues reducing hostility towards crypto and non-fungible token projects.

The United States Securities and Exchange Commission has dropped its investigation into CyberKongz, a renowned non-fungible token project.

The SEC Issues Well Notice To CyberKongz

The CyberKongz team confirmed the closure of the probe in a blog post on Saturday, April 15. Launched in March 2021, CyberKongz is a non-fungible token project featuring a limited edition of 1,000 randomly generated 2D and 3D avatars of gorillas on the Ethereum blockchain network. The NFT collection was created by the digital artist Myoo.

The Zoomies NFT game was launched in December 2022, while the CyberKongz team is also developing a blockchain game named "Kongverse." The regulatory commission had raised queries over issuing tokens (ERC-20) along with blockchain gaming.

The United States Securities and Exchange Commission is shutting down its probe of OpenSea, one of the largest platforms for buying and selling non-fungible tokens, according to two people familiar with the matter.

One of their major concerns with CyberKongz was around the sale of Genesis Kongz NFT series in April 2021, which was actually a contract migration. The United States SEC’s Division of Enforcement approached CyberKongz with a very concerning rhetoric that they could not have issued an ERC-20 crypto token in tandem with a blockchain game without registering it as a security.

In response to the well notice, the CyberKongz leadership termed the SEC’s stance a reflection of an “anti-crypto agenda” but expressed hope for regulatory change with new leadership in the U.S. administration.

Other NFT Projects Acquitted By The SEC

CyberKongz joins a list of crypto and NFT projects acquitted by the United States Securities and Exchange Commission after receiving well notices. Earlier this year, the regulatory commission closed an investigation into OpenSea, one of the leading non-fungible token marketplaces in the NFT market. The agency claimed that all NFT collections on the OpenSea market platform were unregistered securities.

The SEC is closing its investigation into @opensea. This is a win for everyone who is creating and building in our space. Trying to classify NFTs as securities would have been a step backward—one that misinterprets the law and slows innovation.

Every creator, big or small,…

— dfinzer.eth | opensea (@dfinzer) February 21, 2025

In March 2025, the United States Securities and Exchange Commission officially closed its investigation into its NFT company, Yuga Labs. The regulatory commission put Yuga Labs into intense scrutiny three years ago, citing that the digital asset company was trading digital assets without proper registration. Yuga Labs is the digital asset incubation studio behind the Bored Ape Yacht Club and Mutant Ape Yacht Club NFT collections.

After 3+ years, the SEC has officially closed its investigation into Yuga Labs.

This is a huge win for NFTs and all creators pushing our ecosystem forward. NFTs are not securities.

— Yuga Labs (@yugalabs) March 3, 2025

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