OpenSea Gets 'Wells Notice' From SEC, Calling NFTs Sold on Platform Securities

Non-fungible token (NFT) marketplace OpenSea received a notice from the U.S. Securities and Exchange Commission (SEC) that it intends to pursue an enforcement action, the company disclosed on Wednesday.

"OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities," OpenSea's CEO Devin Finzer wrote on social media platform X.

OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities.

We're shocked the SEC would make such a sweeping move against creators and artists. But we're ready to stand up and fight.

Cryptocurrencies have long…

— Devin Finzer (dfinzer.eth) (@dfinzer) August 28, 2024

"We're shocked the SEC would make such a sweeping move against creators and artists. But we're ready to stand up and fight," he added.

OpenSea did not respond to CoinDesk's request for comment by press time.

Wells notices are preliminary warnings that inform respondents of the charges the regulator is considering bringing against them. They usually lead to enforcement actions.

Finzer said his company will fight the notice and pledged $5 million to help cover legal fees for any NFT creators and developers that may also get such notice.

"I hope the SEC will come to its senses sooner rather than later, and that they'll listen with an open mind," he added.

Previously SEC served Wells Notice to the likes of Decentralized crypto exchange Uniswap and popular trading platform Robinhood (HOOD).