Sources say that the SEC investigation into Yuga Labs is actually part of a broader investigation into the NFT market. The regulator is investigating Yuga Labs over whether sales of its digital assets violate federal law. The distribution of ApeCoin (APE), which was given to holders of Bored Ape Yacht Club and related NFTs, is also examined.
“As a leader in this field, Yuga is committed to fully cooperating with any investigation along the way. It is well known that policymakers and regulators are looking to explore the new world of Web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem”, Yuga Labs told Bloomberg in a statement.
Yuga Labs, a big player in the NFT space, is best known for its Bored Ape Yacht Club collections – CryptoPunks and Meebits. However, it seems to be facing a difficult period. BAYC has been involved in a lot of scandalous FUD such as accusations of “fascist promotion” and “racism” that broke out at the end of June. By the end of July, Yuga Labs was accused of falsely promoting NFT BAYC and Apecoin as securities with high returns. These allegations are the reason why Yuga has been targeted by the SEC.
After the news spread, Apecoin lost 9% of its value within 24 hours. Apecoin is trading around $4.73 on CoinMarketCap.
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