April 2025 — After more than two years under scrutiny, NFT gaming project CyberKongz has been cleared of wrongdoing by the U.S. Securities and Exchange Commission (SEC). The agency officially concluded its 27-month investigation in April, bringing relief to the team behind one of Web3’s most high-profile projects.
The probe, which centered on CyberKongz’s use of ERC-20 tokens within its blockchain-based gaming platform, began drawing public attention in December 2024, when the SEC issued a Wells notice to the project. CyberKongz challenged the regulator’s assertions, reportedly educating officials on the technical intricacies of smart contracts.
In a post on X (formerly Twitter), CyberKongz confirmed the closure of the investigation and reassured supporters, noting the cancellation of the targeted project that had sparked the SEC’s interest. The team now plans to shift focus toward a new chapter.
Rebuilding with a Rebrand
CyberKongz founder, known by the handle @myoo_ck, reflected on the toll the investigation had taken, describing it as both emotionally and financially exhausting. Despite the challenges, the team remained committed and resilient, he said, positioning the project for a creative resurgence.
Now, the organization is preparing a strategic rebranding initiative aimed at reinvigorating its core mission. According to the team, this will involve a renewed emphasis on artistic expression and community engagement—values that originally helped the project rise to prominence.
Details of the rebrand will roll out in the coming months, with CyberKongz aiming to honor its past achievements while charting a fresh course forward.
Legacy and Innovation in NFTs
Since its inception, CyberKongz has pushed boundaries in the NFT space. Its profile picture collection once held the highest floor price on the market, and it was among the first to integrate fungible tokens with NFTs. The project also pioneered the use of 3D avatars in open, decentralized ecosystems.
One of its key innovations—ERC721x smart contracts—has been praised for enhancing NFT security. Meanwhile, its in-game economy achieved over 8 million transactions during launch, even surpassing MangaPlus by Shueisha in terms of activity, thanks to an inventive custom manga creation feature.
SEC Rulings Signal a Shift
CyberKongz isn’t alone in receiving regulatory clarity. The SEC has recently dropped several investigations into crypto-related firms, including Coinbase and Kraken, signaling a potentially more defined framework for the digital asset space.
In a statement, CyberKongz said the ruling could benefit the broader blockchain gaming and NFT community by offering regulatory precedent and clearer expectations moving forward.
From Side Project to Web3 Powerhouse
Initially launched as a passion project by @myoo_ck, CyberKongz quickly evolved into a major force within the NFT world, thanks in large part to enthusiastic community support. The founder recalled being surprised by the project’s early success—and now sees even more potential on the horizon.
Although the team faced formidable obstacles, including intense regulatory pressure and high operational costs, they remained steadfast in their vision.
“We’re coming out stronger,” the team said. “With the rebrand, we’re building on what worked—innovation, artistry, and community. This is just the beginning.”
As Web3 developers watch closely, the CyberKongz saga may well shape how future NFT projects approach legal compliance and creative expansion in the years ahead.
