Key Takeaways:
- Immutable received an SEC Wells Notice related to the 2021 sale of its IMX tokens, leading to a 13% drop in the token’s value.
- The SEC’s notice followed limited prior communication, and Immutable suspects scrutiny over its IMX listings and pre-launch private sales.
- Immutable criticized the SEC’s “regulation by enforcement” approach, expressing confidence that IMX is not a security.
Immutable, a web3 gaming company, revealed it received a Wells Notice from the U.S. SEC, possibly signaling future legal action over its IMX token sales from 2021.
This news caused the IMX token price to drop 13%, now trading at $1.16 as of writing this.
Immutable has received a Wells notice from the SEC, the latest in their de facto policy of regulation by enforcement. We received this within hours of our first ever conversation, on a timeline clearly accelerated to land before an election.
— Immutable (@Immutable) October 31, 2024
Sadly, stories like this are becoming…
Immutable suspects the SEC’s focus may be on IMX’s initial private sales, including a pre-launch transaction with Huobi Ventures Blockchain Fund.
Similar notices have impacted major crypto players like Coinbase and Ripple amid the SEC’s intensified crypto scrutiny.
Immutable’s CEO and the Digital Worlds Foundation, responsible for issuing IMX, also received separate Wells Notices.
🚨 Blockchain gaming firm Immutable received a Wells notice from the U.S. SEC, alleging securities law violations and false statements.
— Satoshi Club (@esatoshiclub) November 1, 2024
The SEC claims Immutable’s $IMX tokens are securities. pic.twitter.com/EvOcoR7GMX
The firm mentioned awareness of DOJ inquiries, though no legal action has been confirmed.
Immutable criticized the SEC’s approach as “regulation by enforcement,” arguing that such tactics fail to provide clear regulatory guidance, especially as the agency seeks to retroactively challenge a 2021 token sale.
Confident that IMX isn’t a security, Immutable is prepared to contest the SEC’s stance in this ongoing regulatory dispute.
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