The US Securities and Exchange Commission (SEC) is launching a probe into Yuga Labs, the parent company of the viral Bored Ape Yacht Club NFT collection, over a potential securities violation related to its offerings of digital assets, Bloomberg reported Tuesday.
The SEC is investigating whether or not non-fungible tokens offered via sales by the Florida-based company are comparable to traditional stocks, sources told Bloomberg. As part of its probe into Yuga, the agency is also investigating whether or not sales of digital assets should be subject to the same disclosures required by law for securities offerings.
According to Bloomberg, the financial regulator is looking into the Yuga Lab’s distribution of ApeCoin, a cryptocurrency designed for web3, a series of decentralized web platforms based on blockchain technology.
Yuga Labs has not, as of now, been accused of violating the law or misconduct.
In a statement to ARTnews, Yuga Labs said, “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. As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”