The US Securities and Exchange Commission (SEC) is investigating Yuga Labs for securities violations through the sale of Bored Ape Yacht Club NFTs. According to a new source, the company is also investigating the distribution of ApeCoin, which was launched in March. According to a source, Yuga Labs'' official belief is that it is not the creator of ApeCoin, apparently due to regulatory concerns. Instead, the Ape Foundation is the "steward" of the Ethereum-based token, which
The Ape Foundation is anchored by a board of directors composed of prominent Web3 designers, including Reddit co-founder Alexis Ohanian, FTX Ventures'' Amy Wu, and Animoca Brands'' co-founder and executive chairman Yat Siu.
According to a Bloomberg report, the Securities and Exchange Commission is looking at whether certain assets might be treated more like stocks and therefore should follow the same rules. It is also looking at the distribution of APEcoin, the token involved in the collection.
In a statement to Bloomberg, a SEC investigation may not necessarily lead to action against Yuga. The Miami-based company, which also includes CryptoPunks and Meetbits, said it is "committed to fully cooperating with any inquiries."
With supporters like a16z, and NBA superstar Stephen Curry showing off their bokeh Apes online, Yuga Labs might be the highest-profile cryptocurrency platform yet to be targeted by the Securities and Exchange Commission.
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The latest news comes as US regulators are following their vows to crack down on the mostly unregulated crypto market. Last month, Gary Gensler, the chairman of the SEC, suggested that proof-of-stake networks such as post-Merge Ethereum may be required to comply with securities laws that regulate the issuance of securities such as stocks and bonds.