In a rather amusing press release, the SEC announced they had charged “Stoner Cats 2 LLC” with conducting an unregistered securities offering when they raised $8.2 million selling NFTs that were intended to finance an animated web series called Stoner Cats.
The series was developed by Mila Kunis and her production company, and she, Ashton Kutcher, and Chris Rock all performed in the show, which ultimately aired six episodes accessible only to those who hold the NFTs. The premise, according to the SEC, is “house cats that become sentient after being exposed to their owner’s medical marijuana”.
The SEC determined that the project had marketed the NFTs as an investment in a web series enterprise, and had therefore violated securities laws by not registering with the SEC. Stoner Cats 2 LLC agreed to a cease-and-desist order, and will pay a $1 millon penalty.
This content was sourced from Web3IsGoingGreat