Yuga Labs Is Under SEC Scrunity For Allegedly Conducting Unregistered Offerings
Yuga Labs are yet again under scrutiny. The SEC is already looking into Yuga Labs, the most prolific NFT project. Meanwhile, consumer rights organization Scott+Scott has also initiated a probe against Yuga Labs.
In a news statement dated November 23, 2022, the law firm stated its intention to investigate any violations of federal securities laws by Yuga Labs or some of its
- Promoters and
- Corporate insiders.
The legal firm has asked everyone who invested in a Yuga Labs asset and then suffered losses to come forward. As of now, Yuga Lab properties include the Mutant Ape Yacht Club, Bored Ape Yacht Club, the ApeCoin NFTs, and so on. This law firm seems to be getting ready to file a class action lawsuit against the company.
According to the news release, the decline in Yuga Labs' asset value may contribute to the case. Whether NFTs and other blockchain assets qualify as securities might be the subject of a legal challenge.
History of Bored Ape Yuga Labs
Yuga minted the 10,000 infamous Bored Ape Yacht Club NFT series on April 20, 2021. The NFTs, as the name indicates, are adorned with digitized pictures of a bored-looking cartoon ape. Moreover, Yuga Labs made hundreds of millions of dollars via the selling and resale of Yuga NFTs thanks to Yuga's marketing activities around the BAYC and its ecosystem.
Yuga introduced the ApeCoin token to the public in an ICO on March 17, 2022, keeping 32 per cent of the total supply for themselves and their employees and advisors. Furthermore, Yuga began selling virtual land on April 30, 2022, for its metaverse project. Now, the firm provides 55,000 plots of virtual land for around $320,000,000 in cryptocurrency.
Scott+Scott has extensive expertise in prosecuting significant crypto, antitrust, and securities cases throughout the country. With offices in California, New York, Connecticut, London, and Ohio, the company serves foundations, pension funds, individuals, and other institutions worldwide.