SEC Fines Flyfish Club $750,000

The US Securities and Exchange Commission (SEC) fined Flyfish Club $750,000 on 16 September 2024. The fine was levied for the unauthorized sale of Non-Fungible Tokens (NFTs) deemed to be securities. According to the SEC filing, Flyfish conducted an unregistered offering of NFTs between August 2021 and May 2022, offering and selling approximately 1,600 NFTs to the public, generating gross proceeds of approximately $14.8 million.

What Is Flyfish Club?

Flyfish Club is described as the world's first member's only private dining club, where membership is purchased on the blockchain as a NFT and owned by the token-holder to gain access. The club promised exclusive access to a private dining venue. FFC members are also promised unlimited access to a private dining room that will span across 10,000+ square feet in an iconic, New York City location. The space will consist of a bustling cocktail lounge, upscale restaurant, intimate omakase room, and an outdoor space.

SEC Claims Flyfish Club NFTs are Securities

The SEC accused Flyfish of offering NFTs "to fund the construction and operation of a members-only club in New York City. The Manhattan-based Flyfish Club, has reached a settlement with the SEC over alleged infractions. The SEC does not view this as a creative way to sell membership, but rather as an unregistered offering of securities.

Source: https://99bitcoins.com/news/what-is-flyfish-club-why-was-it-hit-with-750000-sec-fine-for-selling-nfts/

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