Yuga Labs Investigated By SEC, ApeCoin Price Drops

According to Bloomberg, Yuga Labs, the developers of Bored Ape Yacht Club NFTs, is under investigation by the Securities and Exchange Commission over whether sales of certain of its items violate federal law.

According to the article, the regulator is investigating whether some assets should be classified more like stocks and hence subject to the same laws. It is also investigating the distribution of ApeCoin, the collection’s token.

Yuga Labs, an NFT heavyweight, owns collections such as Bored Ape Yacht Club, CryptoPunks, and Meebits. The team stated:

“It’s well-known that policymakers and regulators have sought to learn more about the novel world of web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem. As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”

The investigation is not a predetermined conclusion; Yuga Labs has not been charged with wrongdoing, and the investigation may not culminate in a legal struggle. It is part of the regulator’s broader investigation into crypto-related activity.

However, following Bloomberg’s report, APE is trading at $4.7, down almost 10% in the last few hours.

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Harold

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