OpenSea, which describes itself as “the world's largest” non-fungible token (NFT) market, mentioned in a weblog submit on Wednesday that it had acquired a Wells Discover from the SEC, suggesting that the regulator could quickly file go well with in opposition to the corporate.

CEO Devin Finzer mentioned in a tweet that the SEC is alleging that NFTs on OpenSea's platform are unregistered securities. He then mentioned that crypto firms have “lengthy been within the crosshairs of the SEC,” and that the SEC has made related allegations in opposition to Binance and Coinbase. The crypto trade has lengthy argued that tokens should not conventional securities, although they’re tradable belongings that may retailer worth.

“The SEC doesn’t touch upon whether or not or not there’s an investigation,” an SEC spokesperson mentioned in an e-mail to currencyjournals.

OpenSea's CEO mentioned he intends to “combat for the trade” and has pledged to donate $5 million to cowl the authorized prices of NFT creators and builders who’ve acquired a Wells Discover.