Flyfish Club is an exclusive restaurant for members only that uses non-fungible tokens. The U.S. Securities and Exchange Commission has reached a settlement with Flyfish Club over accusations of selling unregistered securities.
This restaurant is set to open in the next few weeks. agreed To a settlement which includes the payment of a $750,000 fine and complying “certain undertakings.”
Flyfish has been accused of selling NFTs without registering with the SEC.
The SEC ordered that the restaurant sold approximately 1,600 NFTs between August 2021 to May 2022 to investors, and raised over $15 million.
SEC asserted that this restaurant promoted the NFTs to customers as an “investment” Linked to future restaurant success. According to reports, this messaging led 42 percent of buyers to buy more than one NFT even though only one NFT was required for membership.
Flyfish NFTs are priced at launch. was set The price of 2.5 ETH at that time was $8,200. OpenSea analytics shows that the Flyfish NFT collection The total trading volume has now reached over 24 million dollars or 10,380 Ethereum. Flyfish NFT’s current price floor is approximately 1.29 ETH or $3,000 with 1,297 owners.
Plans to open the restaurant have not been halted despite the legal problem. The Lower East Side of Manhattan will welcome Flyfish this Friday. “The wait is almost over,” Instagram post Shared by the Restaurant on September 16,
Gary Vee is a well-known and successful entrepreneur who belongs to the VCR Group. Flyfish website states that NFT holders can enjoy a range of benefits. “private access to a variety of curated areas, rooted in elevated dining and social experiences.”
Flyfish is just one of many companies that are being scrutinized by the SEC. The SEC began to investigate NFT-related companies in June. Dapper Labs settled a lawsuit NBA Top Shot NFTs are worth $4 million. OpenSea, another major NFT platform, received recently a Wells notification from the SEC. This sparked concern across the NFT sector.
A U.S. blockchain advocacy group called The Digital Chamber responded to the bill by calling on Congress. classify certain NFTs as consumer goods Securities are better than investments.
Coinbase has recently announced a new $6 million loan to help it cope with the growing pressure from regulators. legal defense fund for NFT creators. In partnership with OpenSea and a16zcrypto (a venture capital firm), as well as various law firms the initiative aims to give free legal advice to NFT creators who are facing SEC actions.
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Source: blog.cryptoflies.com
