Things are not looking so rosy for Yuga Labs, Inc., the company behind popular NFT collections. The company is under investigation by Scott+Scott Attorneys at Law LLP following the crash of its assets over the past few months.
Yuga Labs, Inc. is behind 5 of the top 6 NFT collections by market cap. These include Bored Ape Yacht Club, Mutant Ape Yacht Club, CryptoPunks, Otherdeed for Otherside, and Bored Ape Kennel Club. Additionally, the company offers virtual land for its metaverse and a native utility token dubbed ApeCoin.
The company has seen the value of its collection and other offerings wiped out by the bear market. And this has piqued the interest of the wider market, particularly those who are distressed by the depreciation of their assets.
It’s the reason Scott+Scott is investigating whether Yuga Labs as a company or some of its offices, directors, promoters and corporate insiders violated federal securities laws. The law firm serves as an international shareholder and consumer rights litigation firm.
And it’s calling on anyone who has purchased any of Yuga’s offerings and has suffered losses to get in touch.
Yuga Labs Is Under SEC investigation
The probe comes a few weeks after news broke that the SEC had launched private investigations against the company. The US regulators are seeking to determine if the company’s offerings can be deemed securities. If so, they are subject to the same disclosure and registration requirements as stocks and other securities.
The investigation will cover all the products the company offers, including ApeCoin, Yuga’s utility token.
Despite the pending investigations, Yuga Labs has not been accused of any wrongdoing. Therefore, the investigation does not mean the SEC will file a lawsuit against the company.
That said, Yuga Labs seems open to the investigation. A statement from the company spokesperson read, “It’s well-known that policymakers and regulators have sought to learn more about the novel world of web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem. As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”