Sources say the SEC investigation into Yuga Labs is actually part of a broader non-fungible token (NFT) market investigation that surfaced in March.

On October 11, a Bloomberg report, citing a source “with knowledge of the matter,” said the Securities and Exchange Commission is investigating Yuga Labs whether certain NFTs are “closer to stocks” and whether the sale of certain digital assets violates federal laws.

However, Cointelegraph understands that the investigation is part of an ongoing SEC investigation into the broader NFT market that is looking into whether certain NFTs and partial NFTs may be subject to federal securities laws.

In March, anonymous sources told Bloomberg that the SEC was investigating NFT creators and marketplaces about whether “certain long-term tokens […] are being used to raise funds as traditional securities.”

A spokesman for the Securities and Exchange Commission told Cointelegraph that she “does not comment on the presence or absence of a potential investigation.”

Meanwhile, Yuga Labs seems to be looking at things on the positive side. In a statement to Cointelegraph, a company spokesperson said, “It’s well known that politicians and regulators have been eager to learn more about the new world of Web3,” adding:

We look forward to working with the rest of the industry and regulators to define and shape a thriving ecosystem. As an industry leader, Yuga has a responsibility to fully cooperate with all requests along the way.”
Bloomberg also reported that the regulator is considering distributing ApeCoin (
A monkey

), which was awarded to the owners of the Bored Ape Yacht Club (BAYC) and other NFTs.

RELATED: Anon Newsgroup Brings New Allegations Against Yuga Labs and Bored Ape Yacht Club

According to the ApeCoin website, Yuga Labs is a member of the ApeCoin DAO community and will accept APE as the main token for their new projects.

Source: CoinTelegraph