NFT project CyberKongz posted on X platform that it had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), a form of communication issued by the SEC staff to let the company know that the agency staff may recommend enforcement action against it. The team said: "We have been silently enduring for the past two years since we first received contact from the SEC. Throughout the process, they showed a complete lack of understanding of blockchain technology, resulting in unfair accusations and inaccurate information. CyberKongz is a project rooted in the field of games. The SEC Enforcement Department has made very worrying remarks to us that if the token (ERC-20) is not registered as a security, it cannot be combined with blockchain games. This kind of speech will have a significant impact on the entire web3 game industry, and we will oppose this position in a wider field."