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.
"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.
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 a notice.
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