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Investments in NFTs and digital assets continue to attract the attention of investors worldwide.
One of the most significant cases from a regulatory perspective concerns Stoner Cats 2, LLC and the sale of NFTs associated with an animated series aimed at an adult audience, well known in the United States also for being voiced by famous Hollywood actors.
The producers of the animated series were fined by the United States Securities and Exchange Commission for having conducted an unregistered offering of crypto securities, in the form of so called non fungible tokens (NFTs), which raised approximately 8 million dollars from investors to finance the animated web series.
By purchasing one of the 10,000 NFTs, each priced at around 800 dollars, fans could obtain exclusive access to the six episode animated series.
Stoner Cats reached a settlement with the SEC and paid a penalty of 1 million dollars.
Through a Fair Fund (a fund for compensating investors), money will be returned to individuals who suffered financial losses from purchasing the NFTs.
Let us take a closer look at what happened, who can request a refund, which deadlines must be remembered, and why it is important to act promptly with the assistance of a lawyer.
What happened with the Stoner Cats NFTs
In July 2021, Stoner Cats 2, LLC sold more than 10,000 NFTs to the public to finance the production of the animated series Stoner Cats.
According to the SEC, these NFTs were not simply collectible digital artworks.
They constituted an offering of unregistered securities, meaning instruments that the regulator considered investment assets subject to US securities laws.
Stoner Cats 2 did not register the offering and did not provide the disclosures required under investor protection regulations.
For this reason, the SEC initiated an administrative proceeding and imposed a penalty of 1 million dollars, creating a fund to distribute part of this amount to investors who can demonstrate that they were harmed by the offering.
What is the SEC Fair Fund
The SEC established the Stoner Cats Fair Fund, a fund financed with the penalty paid by Stoner Cats 2, to return part or all of the money spent by investors, provided that they can demonstrate a loss.
The fund is held with the United States Department of the Treasury and also includes accrued interest.
This type of fund is provided for under US law to allow the redistribution of monetary penalties to investors harmed by violations of securities laws.
Who can request a refund
Those who meet the following criteria may submit a refund claim:
- they purchased Stoner Cats NFTs from Stoner Cats 2, LLC in the offering of 27 July 2021;
- they can document the purchase and, where applicable, the sale or holding of the NFTs;
- they meet the recognised loss criteria under the distribution plan prepared by the SEC.
Not everyone who purchased NFTs will automatically be entitled to a refund.
Under the structure of the distribution plan, the amount of any payment depends on the actual loss incurred by the investor and on the total amount of valid claims submitted.
23 May 2026: an important deadline to remember
The SEC has set a final deadline for submitting refund claims.
Claims must be submitted by 23 May 2026.
Requests submitted after this date risk being excluded from the fund distribution process.
Acting promptly is essential in order not to lose the right to participate in the Fair Fund distribution.
How to submit a claim
To submit a claim, it is necessary to:
- complete a specific form;
- provide documents proving the purchase of the NFTs (and any sale or holding);
- submit the claim before the official deadline of 23 May 2026.
The details of the distribution plan and the requirements for properly documenting the investment are set out in the official plan published by the SEC.
To understand exactly which documents must be submitted and what amount may potentially be recoverable, it is advisable to seek assistance from professionals experienced in financial markets and crypto asset law.
Why contact a law firm
Securities and crypto asset regulations are complex and rapidly evolving, especially in cross border cases.
A lawyer can:
- verify whether you are actually entitled to a refund;
- help you gather and prepare the required documentation;
- properly submit the application to participate in the Fair Fund;
- advise you on the tax and legal implications of the process.
If you invested in Stoner Cats NFTs or believe you may have been involved in a non compliant offering, contact the international law firm Boccadutri as soon as possible to assess your situation together.
FAQ Stoner Cats
What is the Stoner Cats Fair Fund?
It is a fund established by the SEC using the penalty paid by Stoner Cats 2, LLC to distribute refunds to investors who suffered losses from the unregistered NFT offering.
Who can file a claim to obtain a refund?
Those who purchased NFTs in the original sale of 27 July 2021 and can document their transactions in accordance with the distribution plan may participate.
What is the deadline for submitting a claim?
The claim must be submitted by 23 May 2026 in order to be considered valid.
How much can be refunded?
The amount depends on the recognised loss and on the distribution plan. Amounts are calculated based on several factors, including purchase and sale price, where applicable.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
