One of the most significant cases from a regulatory perspective concerns Stoner Cats 2, LLC and the sale of NFTs associated with an animated series aimed at an adult audience, well known in the United States also for being voiced by famous Hollywood actors.
The producers of the animated series were fined by the United States Securities and Exchange Commission for having conducted an unregistered offering of crypto securities, in the form of so called non fungible tokens (NFTs), which raised approximately 8 million dollars from investors to finance the animated web series.
By purchasing one of the 10,000 NFTs, each priced at around 800 dollars, fans could obtain exclusive access to the six episode animated series.
Stoner Cats reached a settlement with the SEC and paid a penalty of 1 million dollars.
Through a Fair Fund (a fund for compensating investors), money will be returned to individuals who suffered financial losses from purchasing the NFTs.
The SEC established the Stoner Cats Fair Fund, a fund financed with the penalty paid by Stoner Cats 2, LLC, to return part or all of the money spent by investors, provided that they can demonstrate a loss.
The fund is held with the United States Department of the Treasury and also includes accrued interest.
This type of fund is provided for under US law to allow the redistribution of monetary penalties to investors harmed by violations of securities laws.
Those who meet the following criteria may submit a refund claim:
They purchased Stoner Cats NFTs from Stoner Cats 2, LLC in the offering of 27 July 2021;
They can document the purchase and, where applicable, the sale or holding of the NFTs;
They meet the recognised loss criteria under the distribution plan prepared by the SEC.
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