SEC charges Impact Theory with unregistered securities offering in the form of NFTs

金色财经 · 2023-08-28T15:13:01.000Z

According to news on August 28, the U.S. Securities and Exchange Commission today charged Impact Theory, LLC, a Los Angeles-based media and entertainment company, with conducting unregistered crypto asset securities offerings in the form of so-called NFTs. Impact Theory raised approximately $30 million through the offering from hundreds of investors, including those across the United States. According to the SEC's order, from October to December 2021, Impact Theory offered and sold three layers of NFTs (called Founder's Keys, Impact Theory, etc.). The order found that Impact Theory encouraged potential investors to view purchases of Founder's Keys as investments in the business, noting that if Impact Theory's efforts were successful, the investors would profit from the purchases. Beyond that, Impact Theory emphasizes that it's trying to build the next Disney, and if successful, it will bring significant value to the founder's primary buyers. The order determined that NFTs offered and sold to investors are investment contracts and therefore securities. As a result, Impact Theory violated the federal securities laws by offering and selling these cryptoasset securities to the public in an unregistered manner and the offering was not exempt from registration.

On August 28, the U.S. Securities and Exchange Commission today charged Los Angeles-based media and entertainment company Impact Theory, LLC with an unregistered offering of crypto asset securities in the form of so-called NFTs. Impact Theory raised approximately $30 million from hundreds of investors, including investors across the United States, through this offering. According to the SEC's order, from October to December 2021, Impact Theory offered and sold three layers of NFTs (called Founder's Keys, Impact Theory, etc.). The order found that Impact Theory encouraged potential investors to consider the purchase of Founder's Keys as an investment in the business, and noted that if Impact Theory's efforts were successful, investors would profit from the purchase. In addition, Impact Theory emphasized that it is trying to build the next Disney, and if successful, it will bring huge value to the founder's main purchasers. The order determined that the NFTs offered and sold to investors were investment contracts and therefore securities. Therefore, Impact Theory violated the federal securities laws by offering and selling these crypto asset securities to the public in an unregistered manner without an exemption from registration.