Stoner Cats $1M Settlement for Unregistered NFT Offering

Individuals and entities who purchased Stoner Cats NFTs from Stoner Cats 2 in the July 27, 2021, offering may be eligible to submit a claim for a cash payment from a class action settlement.

The Securities and Exchange Commission (SEC) ordered Stoner Cats 2 LLC to pay a $1,000,000 civil money penalty after finding that the company conducted an unregistered offering of Stoner Cats NFTs. The SEC created the Stoner Cats Fair Fund so it can distribute that penalty, plus interest, to eligible investors.

Who can file a claim?

Eligible claimants include individuals and entities who meet all of the following criteria:

• They purchased Stoner Cats NFTs directly from Stoner Cats 2 LLC on July 27, 2021.
• They submit a completed claim form by the May 23, 2026 deadline.
• They provide documentation supporting each transaction listed in the claim form.
• They qualify for a distribution payment of at least $20.

How much can class members get?

Class members can receive a cash Distribution Payment from the Stoner Cats fund:

• Recognized loss payment: A payment based on the recognized loss calculation in the Plan of Distribution.
• The fund administrator calculates recognized loss per NFT using the purchase price, the sale price (if any), any royalty paid to Stoner Cats 2 LLC, and the date of sale or holding period relative to September 13, 2023, and December 12, 2023.

• Minimum payment: The fund administrator issues distribution payments only when the calculated distribution equals or exceeds $20.
• Pro rata adjustment: If total recognized losses exceed the value of the fund, the fund administrator reduces payments on a pro rata basis.

How to claim a cash distribution payment

To receive a settlement payment, class members must submit a claim form by the May 23, 2026 deadline. Class members can file a claim online, email the completed form, or print and mail the PDF claim form to the fund administrator.

Settlement administrator's mailing address: Stoner Cats, Fair Fund Administrator, P.O. Box 2930 Portland, OR 97208-2930

Required proof or documentation

• To submit a claim, all claimants must provide the last four digits of their Social Security number or taxpayer identification number.
• To verify purchase eligibility, claimants must provide documentation showing the total number of Stoner Cats NFTs purchased on July 27, 2021.
• To verify sales, claimants must provide the quantity sold, sale date, and net proceeds for any NFTs sold on or before December 12, 2023.
• To complete the claim, claimants must attach documentation supporting each transaction listed in the claim form.

$1 million fair fund

The settlement fund includes:

• Settlement administration costs: To be determined
• Payments to eligible class members: Determined by number of valid claims and distribution calculations

Important dates

• Deadline to file a claim: May 23, 2026

When is the Stoner Cats fair fund payout date?

The fund administrator will distribute payments to class members with valid claims after it completes claim reviews, issues claim status notices, resolves any deficiencies, and finalizes determinations.

Why did the SEC enforce this civil penalty?

This enforcement action alleged Stoner Cats 2 LLC conducted an unregistered securities offering when it sold 10,320 Stoner Cats NFTs on July 27, 2021. The SEC found the company failed to register the offering and did not qualify for an exemption, which resulted in a violation of federal securities laws. Stoner Cats 2 LLC agreed to pay a $1,000,000 civil money penalty, and the SEC established the Stoner Cats Fair Fund so the penalty can be distributed to harmed investors.

Sources

1. Plan Notice
2. Claim Form
3. Stoner Cats Fair Fund official website FAQ