The Stoner Cats NFT project, which was co-created by actress Mila Kunis and is related to a celebrity-filled cartoon series, has been removed from major NFT marketplaces like OpenSea, Blur, and Rarible following charges by the US Securities and Exchange Commission (SEC) for conducting an unregistered offering of crypto asset securities.
The six-episode adult animated web series centers around five house cats who mysteriously become sentient. With their “higher” consciousness, they create an absolute catastrophe, forcing them to repeatedly save their beloved owner, Ms. Stoner.
Developed by Kunis’ Orchard Farm Productions, the web series stars Kunis, Ashton Kutcher, Jane Fonda, Seth McFarlane, Dax Shepard, Gary Vaynerchuk, Chris Rock, and Ethereum’s Vitalik Buterin.
According to the SEC, Both OpenSea and Rarible have verified that they have banned Stoner Cats NFT trading, and Blur has no current listings following the SEC settlement.
While NFTs can no longer be purchased, sold, or transferred on these platforms, they remain on the blockchain and in the wallets of holders. Some marketplaces, such as LooksRare and X2Y2, still have Stoner Cats NFT listings online.
Recapping the SEC Order
According to the September 13 SEC Order, Stoner Cats 2 LLC (SC2) raised approximately $8 million from investors to finance the animated web series, Stoner Cats, in July 2021 through the sale of Ethereum-based NFTs. Each NFT granted holders access to the web series.
With each NFT selling for approximately $800 each, the collection sold out in 35 minutes. In its Order, the SEC stated that prior to Stoner Cats NFTs being sold to the public, SC2’s marketing campaign specifically emphasized the benefits of owning an NFT, which included the option for investors/owners to resell their NFTs on the secondary market.
“Regardless of whether your offering involves beavers, chinchillas or animal-based NFTs, under the federal securities laws, it’s the economic reality of the offering – not the labels you put on it or the underlying objects – that guides the determination of what’s an investment contract and therefore a security,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.
Editor’s note: This article was written by an nft now staff member in collaboration with OpenAI’s GPT-3.5.