CyberKongz Beats SEC Probe, Teases Rebrand and Fresh Start

CyberKongz, a blockchain-based NFT and gaming project, announced that the US SEC has officially closed its investigation. Meanwhile, the SEC has not made any public statements, but the case has ended with no charges or enforcement actions.

The investigation began in 2023 and centered around how the project used its digital token, called BANANA, in combination with its blockchain game. In December 2024, CyberKongz shared that it had received a Wells Notice, a formal warning that SEC staff might recommend enforcement. That never happened.

“After two years of tension and quiet, this chapter has finally closed,” the CyberKongz team shared on X. “We’re finally free to share our journey—and reveal what’s coming next.”

The SEC has officially closed its investigation into CyberKongz.

After years of litigation, unjust allegations, crippling legal fees, and the biggest hurdle we could possibly encounter – we are free.

This is an extremely proud moment for CyberKongz. We are a small, passionate,… pic.twitter.com/kU1QOnp4wN

— CyberKongz (@CyberKongz) April 15, 2025

Focus on Token Use in Game

At the core of the investigation was how CyberKongz linked its token to a gaming experience. The SEC questioned whether combining a token with a game might classify it as a security, something that would require legal registration.

The team said the legal pressure limited their ability to develop the project freely. “The SEC’s position made it nearly impossible to plan ahead,” CyberKongz stated. “We never saw our project as falling under those rules, but we weren’t allowed to speak publicly until now.”

The project also mentioned its Genesis Kongz smart contract migration in 2021 as one of the areas the SEC reviewed during the process.

Plans for Rebrand and New Direction

Now that the case is over, CyberKongz plans to restart with a full rebrand and updated roadmap. The team said they had been preparing for this moment and will soon share more details about what comes next.

“We’ve taken our share of hits, but we’re still standing,” said Myoo, the project’s founder and lead artist. “What comes next is built from experience. We’re going back to what made this fun and creative in the first place.”

CyberKongz launched its original NFT collection on Ethereum in 2021 and grew its ecosystem with additional drops. In 2023, the project shifted its blockchain game to Ronin, a network built specifically for gaming.

A Softer Stance on Crypto Under New Administration

This case is one of several that the SEC has closed since early 2025. Investigations into other companies like Coinbase, Uniswap, Kraken, and OpenSea have also ended recently. This trend follows changes at the agency under President Donald Trump’s administration.

A new task force focused on crypto policy is now active inside the SEC. It is currently led by Commissioner Hester Peirce, who has pushed for clearer guidelines instead of enforcement-heavy tactics.

Only a handful of NFT projects have openly shared the end of their SEC cases. In March, Yuga Labs, behind Bored Ape Yacht Club, did the same.

With the legal case now behind them, CyberKongz aims to rebuild and reposition itself in the Web3 and gaming space.