CyberKongz Wins: SEC Drops Investigation, Paving Way for NFT Innovation

The U.S. Securities and Exchange Commission (SEC) shut down its 27-month probe into CyberKongz without charging the company or taking enforcement action, a huge victory for the company and the entire Web3 and NFT gaming sector. The probe, initiated in late 2023 and preceded by a December 2024 Wells notice, examined whether CyberKongz's application of its ERC-20 BANANA token and the 2021 migration of its Genesis Kongz NFT contract were unregistered securities offerings. CyberKongz objected to the SEC's interpretation, attributing fault to regulators for overestimating smart contract migrations and token usage.

The U.S. Securities and Exchange Commission (SEC) ended its 27-month probe of CyberKongz without bringing it charges or taking enforcement action, a huge victory for the company and the entire Web3 and NFT gaming sector. The probe, initiated in late 2023 and preceded by a December 2024 Wells notice, examined whether CyberKongz's application of its ERC-20 BANANA token and the 2021 migration of its Genesis Kongz NFT contract were unregistered securities offerings. CyberKongz objected to the SEC's interpretation, attributing fault to regulators for overestimating smart contract migrations and token usage.

The reported April 2025 conclusion of the investigation enables CyberKongz to proceed with a blanket rebrand, and strategic shift, concentrating on innovation, creative development, and community building. The project team has characterized the resolution as a battle well fought after years of litigation, spurious allegations, and huge legal expenses. This instance is symptomatic of a wider trend by the current SEC administration towards easing enforcement strategies on crypto and NFT businesses, promoting regulatory openness and harmonization of the crypto world.