The producers of the animated comedy Stoner Cats, which relied on NFTs, have agreed to pay a civil fine and set up a fund to refund investors.
Stoner Cats’ developers have been accused by the SEC of selling unregistered securities in connection with the token sale of NFTs in 2021.
The firm behind the NFT-based comic, Stoner Cats 2 LLC, has consented to a cease-and-desist order and paid a $1 million civil penalty. The corporation will also create a “Fair Fund” to reimburse anyone who bought NFTs during the main auction and destroy any NFTs it still has.
Actress Mila Kunis, who also voiced a part in Stoner Cats, founded the production company Orchard Farm Productions.
The SEC claims that $8 million was obtained by the firm via the sale of Ethereum NFTs used as tickets to the performance. The NFTs provided access to a web series featuring five stoned cats and their owner.
Ashton Kutcher, Jane Fonda, “Family Guy” creator Seth McFarlane, and comedian Chris Rock all lent their voices to the episode. Vitalik Buterin, founder of Ethereum, also made his Hollywood debut in the part of a taxidermied cat.
Although the SEC claims that the A-listers’ names were used to promote NFT, no mention of them was made in today’s press release.
Company “highlighted specific benefits of owning them,” such as the potential to resell them on secondary markets for a profit, and the NFTs sold out in 35 minutes, according to the agency.