U.S. Securities and Exchange Commission Investigates Bored Ape Yacht Club Creator Yuga Labs Inc.

Yuga Labs Inc., the creator of the popular Bored Ape Yacht Club collection of NFTs, is currently under investigation by the U.S. Securities and Exchange Commission over whether sales of its digital assets violate federal law.

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The U.S. Securities and Exchange Commission (SEC) will determine whether tokens from Yuga Labs have characteristics akin to stocks and should follow the same disclosure rules, according to Bloomberg.

ApeCoin, the cryptocurrency given to holders, will also be included in the regulators examinations.

The SEC has not accused Yuga Labs of wrongdoing and the opening of an SEC probe doesn’t mean the agency will sue the firm.

“It’s well-known that policymakers and regulators have sought to learn more about the novel world of web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem,” Yuga Labs said in a statement.

“As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”

The SEC declined to comment.

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