NFT-Backed Animated Series Stoner Cats Fined $1 Million for Misleading Investors

NFT-Backed Animated Series Stoner Cats Fined  Million for Misleading Investors

The Securities and Exchange Commission (SEC) has fined the NFT-backed animated series Stoner Cats $1 million for misleading investors. The production, which featured the voices of Ashton Kutcher, Mila Kunis, Chris Rock, Dax Shepard, Jane Fonda, and Seth MacFarlane, raised $8 million through the sale of non-fungible tokens (NFTs) in 2021. The SEC alleges that the funds were misappropriated as part of a scheme. Stoner Cats 2 LLC, the production entity, has been charged with conducting an unregistered offering of crypto asset securities.

Mila Kunis, listed as a member of the production and blockchain team on the series’ website, has faced criticism alongside Ashton Kutcher for offering legal support to former That ’70s Show castmate Danny Masterson, who was sentenced to three decades in prison on a felony rape conviction. The LLC, without admitting or denying the SEC’s findings, has agreed to a cease-and-desist order and a civil penalty of $1 million. Additionally, a fund will be established to return money to affected investors, and all NFTs related to the series will be destroyed. The production is also required to post a public notice about the SEC’s order.

Stoner Cats gained attention for its NFTs and cryptocurrency involvement, with the LLC offering over $10,000 NFTs for $800 each, selling out in just 35 minutes. The SEC claims that the production’s marketing emphasized the benefits of owning the NFTs, including the option to resell them on the secondary market. The SEC considers this a violation of the Securities Act of 1933.

 

CrimeDoor
Author: CrimeDoor

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