CyberKongz SEC Investigation Closed After 2 Years

CyberKongz, a blockchain-based NFT and gaming project, has announced that the US Securities and Exchange Commission (SEC) has officially closed its investigation into the project. The SEC did not make any public statements, and the case concluded without any charges or enforcement actions. The investigation, which began in 2023, focused on how CyberKongz used its digital token, BANANA, in conjunction with its blockchain game. In December 2024, CyberKongz received a Wells Notice, a formal warning that SEC staff might recommend enforcement. However, no enforcement actions were taken.

The core of the investigation revolved around the integration of CyberKongz's token with its gaming experience. The SEC questioned whether this combination could classify the token as a security, which would require legal registration. The legal pressure from the SEC hindered the project's development, making it difficult for the team to plan ahead. CyberKongz stated that they never saw their project as falling under the SEC's rules but were unable to speak publicly about the matter until now. The project also mentioned its Genesis Kongz smart contract migration in 2021 as one of the areas reviewed by the SEC.

With the investigation now closed, CyberKongz is planning a full rebrand and an updated roadmap. The team has been preparing for this moment and will soon share more details about their future plans. Myoo, the project’s founder and lead artist, expressed optimism, stating that the team has taken their share of hits but remains standing. The project aims to return to its creative roots and rebuild its presence in the Web3 and gaming space. CyberKongz launched its original NFT collection on Ethereum in 2021 and expanded its ecosystem with additional drops. In 2023, the project shifted its blockchain game to Ronin, a network specifically designed for gaming.

This closure of the SEC investigation into CyberKongz is part of a broader trend where the SEC has been closing several cases since early 2025. Other companies like Coinbase, Uniswap, Kraken, and OpenSea have also seen their investigations end recently. This shift follows changes at the SEC under the new administration, which has established a task force focused on crypto policy. The task force, led by Commissioner Hester Peirce, aims to provide clearer guidelines rather than relying on enforcement-heavy tactics. Only a few NFT projects, including Yuga Labs behind Bored Ape Yacht Club, have publicly announced the end of their SEC cases. With the legal hurdle behind them, CyberKongz is now focused on rebuilding and repositioning itself in the rapidly evolving Web3 and gaming landscape.