CyberKongz Secures Victory as SEC Closes Investigation Without Charges

CyberKongz Free from SEC Investigation

CyberKongz, a well-known Ethereum NFT and gaming project, shared on Tuesday that the U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into the project. This brings relief after a long period of uncertainty. CyberKongz is one of several crypto and NFT projects that have seen their SEC investigations close since a more crypto-friendly direction began under the Trump administration.

CyberKongz said it had been in contact with the SEC for over two years. In December, the project received a Wells notice. The SEC is taking enforcement action into consideration, as indicated by this notice. The future appeared unknown at that point. But suddenly things have changed. It's a closed case. There are no fees. There are no fines. Not enforced.

When approached, the SEC declined to respond. On other closed cases, the Commission has similarly refrained from commenting in recent weeks. This appears to have grown commonplace.

On X (formerly Twitter), the group expressed their opinions."We are free," the message stated, following years of litigation, false accusations, terrible legal bills, and the largest obstacle we could face. They described the moment as extremely proud. The project is led by a small and passionate Web3 team. They chose to face this battle, not just for themselves, but for the wider Web3 community.

Source: X

The BANANA Token and SEC Concerns

The CyberKongz ecosystem was the focus of the SEC's inquiry. The BANANA token was one of them. The game of blockchain. The 2021 migration of the Genesis Kongz contract. According to reports, the regulator had considered this to be a possible token sale.

In Web3, currencies linked to blockchain games are frequently launched. For this reason, CyberKongz was concerned about the SEC's wording about tokens. 2. They said that it might have an impact on the entire Web3 gaming market. Projects like theirs may now get some clarity from this result. The investigation’s end may give others a bit more confidence to move forward.

Source: X

CyberKongz creator and artist, known online as Myoo, also shared a message on X. “We have taken some hard hits; but ultimately we have come through the other side—stronger and more determined than ever,” he wrote. The team wants to return to its original objective. To build and create in the way that made them stand out in the first place.

CyberKongz is not alone. Bored Ape Yacht Club's founder, Yuga Labs, likewise declared in early March that the SEC probe was closed. Yuga called it a “huge win” for NFTs.

OpenSea, a major NFT marketplace, had its own case dropped in February. But questions remain. The platform is still working with the SEC to get clarity on rules for NFT marketplaces.

CyberKongz began its journey in 2021 with its Genesis NFT collection on Ethereum. Over time, the project grew. It launched more collections and even expanded into the Ronin sidechain, which is known for Ethereum-based gaming. In 2023, the project moved its Play & Kollect game to Ronin.

At one point, CyberKongz NFTs sold for over $300,000. Today, the floor price sits around $5,447 in Ethereum, based on data from NFT Price Floor. The value may have dipped, but the team’s passion and resilience seem stronger than ever.

This moment is a turning point for CyberKongz. It shows that small teams in the Web3 space can push through difficult challenges. The outcome may also offer hope to other projects building with creativity and ambition in the crypto and NFT space. For CyberKongz, the path is now clear. They’re ready to build again—this time, without the weight of an investigation hanging over them.