- Yuga labs are under SEC scrutiny.
- An investigation has been launched regarding the unregistered public offerings.
- The investigation has been launched by Scott+Scott, a litigation firm based in New York.
In a major shock to the web# world, Scott+Scott Attorneys at Law LLP has announced an investigation into Yuga Labs. Scott+Scott is an international shareholder and consumer rights litigation firm based in New York. It has launched an inquiry into Yuga Labs or its certain offices, directors, promoter and corporate insiders who have violated federal securities law.
Yuga Labs, The Bored Ape creator, is facing a probe from the SEC over unregistered offerings. Yuga Labs is an organization that sells a suite of digital assets, including the ApeCoin tokens and virtual land in its metaverse.
On April 20, 2021, Yuga Labs launched an NFT of an Ape with a Bored emotion, with an initial minting of 10,000. The promotional efforts of the Bored Ape Yacht Club generated millions of dollars in sales.
Afterwards, Yuga Labs issued the APeCoin token into the public offering, retaining approximately 32% of the total supply for the founders, executives and other insiders on March 17, 2022.
By the end of April 2022, Yuga launched a sale of virtual land related to its metaverse project offering 55,000 plots of virtual land and raising approximately $320 million worth of cryptocurrency.
After the launch of a Bloomberg article on October 11, 2022, the price has fallen sharply on heavy trading volumes. The article “Bored Ape Creator Yuga Labs faces SEC Probe Over Unregistered Offerings” suggests that the Securities and Exchange Commission has launched an investigation into Yuga’s Suite of Digital Assets.