On Monday, NFT project Flyfish Club, LLC agreed to pay $750,000 as part of its settlement with the U.S. SEC.
The SEC said in a court filing that Flyfish "engaged in an unregistered crypto asset securities offering" when it sold 1,600 NFTs to U.S. investors, making a profit of $14.8 million in the process. The purpose of selling these NFTs was to finance the construction of an upscale restaurant and bar called "Flyfish Club" in New York City.
The SEC said that owning Flyfish NFTs is a way to become a member of the club, which can then be sold. According to its website, the restaurant is set to open this month.
Flyfish did not admit or deny the agency's findings. According to the SEC's order, the entity also agreed to destroy all Flyfish NFTs under its control within the next 10 days and not receive future royalties from NFT sales. FlyFish did not immediately respond to a request for comment. (The Block)