Yuga Labs, creators of Bored Ape Yacht Club NFTs, is facing a probe by the U.S. Securities and Exchange Commission into whether sales of some of its offerings violate federal law, according to a report by Bloomberg.
The regulator is looking into whether certain assets could be treated more like stocks and therefore should follow the same rules, according to the report. It is also looking at the distribution of APEcoin, the token linked to the collection.
Yuga Labs, a heavyweight of the NFT world, controls collections such as Bored Ape Yacht Club, CryptoPunks and Meebits.
“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 told Bloomberg in a statement. “As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”
The price of APEcoin had declined by 7.5% as of press time following Bloomberg’s report.
