News

SEC Investigating NFT Creators and Marketplaces

Bloomberg is reporting that the SEC is investigating nonfungible token (NFT) creators and marketplaces for securities violations, according to a report from Bloomberg.

Anonymous sources in the report claims that the SEC is investigating whether “certain nonfungible tokens […] are being utilized to raise money like traditional securities.”

According to Bloomberg, over the past several months, attorneys in the SEC’s enforcement unit have sent subpoenas demanding information about the token offerings.

As part of its review, the SEC is seeking information on so-called fractional NFTs, which involve breaking down the assets into units that can be easily bought and sold, said the people, who asked not to be named as the probe hasn’t been disclosed publicly.

  

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Former SEC Senior Attorneys and Broker-Dealer attorneys at Sallah Astarita & Cox represent crypto investors and promoters across the country. For more information, call them at 212-509-6544.
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The Securities Lawyer