The Stoner Cats Fair Fund was established by the U.S. Securities and Exchange Commission (SEC) following enforcement action against Stoner Cats 2, LLC. The SEC alleged the company conducted an unregistered securities offering by selling Stoner Cats NFTs without proper registration under federal securities laws.
The settlement does not involve traditional consumer products but instead covers digital assets—specifically Stoner Cats NFTs sold on July 27, 2021. These NFTs were marketed as access to an animated web series and resale opportunities, which led regulators to classify them as securities.
The $1 million civil penalty paid by Stoner Cats 2, LLC has been placed into a Fair Fund to compensate eligible investors who purchased these NFTs during the offering.
This settlement matters because it reflects increasing regulatory scrutiny of NFTs and digital asset offerings, particularly when marketed with investment-like expectations.
Eligible claimants include individuals or entities who purchased Stoner Cats NFTs directly from Stoner Cats 2, LLC on the offering date. Payments are based on a “recognized loss” formula that considers purchase price, resale activity, and holding period. If total claims exceed the fund, payments will be reduced on a pro-rata basis.
FAQ
What is the Stoner Cats Fair Fund?
It is a $1 million distribution fund created by the SEC to compensate investors who purchased Stoner Cats NFTs.
Who qualifies for payment?
Anyone who purchased Stoner Cats NFTs directly from the issuer on July 27, 2021 and meets eligibility criteria.
How much can I receive?
Payments vary based on recognized losses and may be reduced pro-rata depending on total claims filed.
Do I need proof to file a claim?
Yes. Claimants must provide documentation of NFT purchases and any sales transactions.
When is the deadline to file?
Claims must be submitted by May 23, 2026.
How are payments issued?
Payments are distributed after claim review and final determination by the fund administrator.