Pic Credit- vanityfair
The creator of the popular animated series Stoner Cats ran into problems with the regulatory body. The body asserted that the developer was selling Cryptoasset securities in the form of NFTs, which are similar to unique digital items, without registration. The body said that the inventor had to pay a significant fine of $1 million. They added that the $8 million from the sale of the NFTs was utilized to fund the production of the animated series. And guess what? Even the actors Mila Kunis and Ashton Kutcher voiced characters in the show.
The Cats History
Pic Credit- cartoonbrew
Stoner Cats is a fun series that was created in the past by three really talented creators named Ash Brannon, Chris Cartagena, and Sarah Cole. It is based on Sarah’s mother, who takes medicinal marijuana to treat her early-stage Alzheimer’s. Her wonderful kitties, who will stop at nothing to save her, are the focus of the series.
After hearing this tale, Mila Kunis and her friends recognized it was unique. They wanted to ensure that this humorous and intimate tale strongly resonated with the audience. So they collected an extremely skilled bunch of artists of all stripes. They even partnered with NFT and technical specialists, such as the astute individuals behind CryptoKitties.
The Action By the SEC
Pic Credit- financemagnates
The governing agency, the SEC, asserted that Stoner Cats 2 had committed an unlawful act. Without registering, they sold these items known as Stoner Cats NFTs. They sold a significant number of them—10,420—and they were each valued roughly $800.
The SEC clarified that the issue was with the way these NFTs were being sold. They were advising individuals that if they purchased them, they could resell them and profit. They also claimed that because they were produced by well-known Hollywood figures and featured renowned actors in a web series, NFTs would appreciate in value and allow investors to benefit. But it is not permissible. According to a legislation known as the Securities Act of 1933, you must register any item like this before selling it. Stoner Cats 2 breached the law since they neglected to do that.
The SEC wants to be clear that whether you are selling NFTs with animals or anything else, it makes no difference. It matters whether you convince people they can profit from it. It is a security because of this, and you must abide by the restrictions. Stoner Cats 2 must now deal with the repercussions of their illegal actions. When it comes to buying and selling things and gaining money, it’s crucial to constantly go by the regulations.
The Settlement
A $1 million penalty will be paid by Stoner Cats as part of a settlement with the SEC. The persons who suffered financial harm as a result of purchasing their NFTs must also receive compensation from them. They must also destroy every single NFT they possess. Even though Stoner Cats didn’t acknowledge or deny anything, the SEC stated that they had agreed to cease what they were doing and pay the fee.
