Stoner Cats 2, LLC $1M SEC Fair Fund

Eligible claimants can submit their claims for compensation.

$1,000,000

Cash Settlement

SEC

Court

3-21655

Case number

07/27/2017

Class period Start

09/12/2023

Class period End

05/23/2026

Claim deadline

Stoner Cats 2, LLC has agreed to pay $1 million through an SEC Fair Fund to compensate NFT purchasers, resolving claims that it conducted an unregistered crypto asset securities offering in connection with its Stoner Cats animated series.

Outline

On July 27, 2021, Stoner Cats 2, LLC sold over 10,000 NFTs tied to an animated web series, raising about $8 million in under 35 minutes. The SEC later found the offering violated securities laws, the company agreed to settle, and a $1 million Fair Fund was established for investors.

Timeline
On July 27, 2021: Stoner Cats 2, LLC launches NFT sale, raising ~$8 million
Between 2021 and 2023: The company promotes resale potential and market demand, leading buyers to view NFTs as investments
On September 13, 2023: SEC announces charges and $1 million settlement
On March 25, 2024: Distribution Plan published for public comment
In January, 2026: The court set May 23, 2026, as the deadline to submit claims for the settlement.
Background

Stoner Cats 2, LLC launched a high-profile NFT offering in July 2021, designed to fund a six-episode animated web series featuring a star-studded cast of celebrities. The company sold 10,320 tokens for 0.35 ETH each—roughly $800 at the time—promising buyers unique digital assets that also served as exclusive tickets to the show.

The offering was an immediate hit, selling out in just 35 minutes and generating approximately $8.2 million in gross proceeds.

However, the company’s marketing leaned heavily on the potential for the NFTs to rise in value, highlighting secondary market activity and leading many purchasers to view the tokens as speculative investments.

Despite the massive scale of the launch, Stoner Cats 2 failed to register the offer and sale with the Securities and Exchange Commission (SEC).

Federal regulators later concluded that these NFTs were actually unregistered securities, meaning investors were never provided the essential disclosures required under U.S. law.

As the reality set in and the SEC moved to settle charges, the perceived value of the project shifted, leading to a significant drop in the value of the assets.

To resolve the investigation, the company agreed to pay a $1 million civil penalty, which was used to establish the "Stoner Cats Fair Fund" to repay harmed investors.

What Can Investors Expect Now?

Stoner Cats 2, LLC has agreed to pay $1 million through an SEC Fair Fund to compensate NFT purchasers, resolving claims that it conducted an unregistered crypto asset securities offering in connection with its Stoner Cats animated series.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Type

SEC Fair Fund

Case Status

Accepting Claims

Alleged Offence

Malpractice,

Breach of Fiduciary duty

Suspected Party

Service Provider

Security Type

NFT

Trade Direction

Long

Trades matching type

FIFO

Frequently Asked Questions

Trusted by industry leaders

Endorsed by top professionals who trust our innovative solutions to drive impactful results.