Bored Ape and other NFT projects under federal investigation

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A report from Bloomberg on October 11 aims for the NFT market to be in trouble. Citing a familiar source, it suggests that the Bored Ape Project and other NFTs may be overlooked for alleged violations of federal guidelines. Yuga labs, the creator of several NFT projects, says they are looking at the brighter side of the whole scenario. The underlying investment is to check the possibility of illegal collection.

Multiple sources suggest that the ongoing investment is not limited to just Yuga labs. The Securities and Exchange Commission (SEC) has launched an investigation into the NFT market. Yuga labs projects seems to be part of the investigation to check whether the NFTs are more akin to stocks. The SEC is also looking into illegal trading of digital assets. In March 2022, anonymous sources pointed to a possible investigation by the SEC against NFT creators and marketplaces. It stated that the investigation may be to check whether NFTs are being used to raise funds in the name of traditional securities.

The SEC has declined to comment on the existence or non-existence of an ongoing investigation. On the other hand, the Yuga labs are quite positive about this whole situation. The company sees this scenario as an opportunity for decision makers to learn more about the new world of Web3. “We hope to work 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 all inquiries along the way,” said the official statement from Yuga laboratories.