- The business claimed that soon after its initial meeting with the SEC, the SEC sent a Wells notice.
- Although the Wells notice contained few specifics, Immutable stated that it thinks the SEC’s allegations may relate to IMX’s IPO and private sales in 2021.
The U.S. Securities and Exchange Commission has indicated that it may file an enforcement action against blockchain gaming platform Immutable for potentially violating securities laws.
The business said that soon after their initial meeting, the SEC received a Wells notice. When SEC employees notify a firm that they may suggest an enforcement action against them, this is known as a Wells notice.
In order for the SEC to properly comprehend the matter, corporate counsel and the SEC frequently conduct interviews and discussions for several months before issuing a Wells notice. Rather, during our initial meeting with the SEC, we were informed that the company would receive a Wells notice within a week. After that, we got it in a matter of hours.
Although the notice contained few details, it believes the SEC’s allegations may relate to the listing and private sales in 2021. “Aware of related inquiries, but no actual or proposed legal action,” the corporation added.
Regarding the presence or nonexistence of a potential probe, the SEC makes no comments.
Over the past year, several cryptocurrency companies, including OpenSea, Crypto.com, and Robinhood Crypto, have gotten Wells notices. Over the years, the SEC has also filed several enforcement proceedings against large companies, including as Coinbase, Kraken, and others. According to SEC Chair Gary Gensler, investor protections are essential, and cryptocurrency companies must register with the agency and abide by its regulations.
Because the regulations were created for more conventional organizations that are not the same as the digital asset market, some members of the crypto industry have retaliated by claiming that it is impossible to register with the agency.
Immutable said that IMX is not a security and promised to defend its position if necessary.
We have faith in our position, in the potential of digital ownership to benefit the 3.1 billion gamers worldwide, and in the ability of blockchain technology to improve the internet. We will vigorously defend these rights, as well as those of our industry, if necessary.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
