SEC Wells Notice regarding Pepe memecoin

WASHINGTON, Dec. 3, 2024 /PRNewswire/ -- Staff from the Division of Enforcement ("Staff") at Securities and Exchange Commission ("SEC") issued a "Wells Notice" on October 22, 2024 informing Eric Wallace, one of the individuals involved in the creation and development of the Pepe memecoin ("PEPE Development Team"), that the Staff has made a "preliminary determination" to recommend that the SEC file an enforcement action against Mr. Wallace alleging violations of the federal securities laws, including the Securities Exchange Act of 1934 and the Securities Act of 1933. Based on discussions with the Staff, this potential enforcement action would relate to the transfer of approximately 4% of Pepe tokens to members of the Pepe Development Team in August 2023. The potential civil action may seek injunctive relief, disgorgement, and civil penalties. Mr. Wallace denies any wrongdoing, disputes the SEC's claim that the Pepe memecoin is a security, and is prepared to vigorously defend against any potential SEC enforcement action alleging otherwise.

Contact: Marlon Q. Paz, Latham & Watkins LLP, +1.202.654.7101, [email protected]

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SOURCE Eric Wallace