The SEC's crackdown on cryptocurrency has escalated, and the next significant blow may be directed at the Web3 game platform Immutable, accusing the company of violating securities laws.
Immutable stated on Thursday that it received a 'Wells Notice' from the U.S. SEC last month, indicating that enforcement action may be taken against Immutable, accusing the company of violating securities laws.
After the news broke, the price of Immutable's token IMX plummeted, trading at $1.16 at the time of writing, a drop of over 14% in the past 24 hours.
'Wells Notice' is an 'informal reminder' issued by the U.S. SEC before filing a lawsuit, and the company receiving the notice can communicate and negotiate with the SEC before receiving a formal lawsuit. According to U.S. law, once a company receives a Wells Notice, the SEC officially initiates a complete investigation and complaint procedure, known as the Wells process.
Immutable stated in a statement: 'In general, before formally issuing a Wells Notice, the SEC usually engages in months of discussions and communications with the company's legal team to fully understand the situation within the company.'
However, when we first contacted the SEC, they directly informed the company that it would receive a Wells Notice within a week, and the notice was sent just a few hours later that same day.
Immutable suspects that the SEC's accusations may be related to the IMX token the company issued and privately placed in 2021, but the notice did not specify the details of the alleged violations.
In response to this matter, an SEC spokesperson only stated, 'We will not comment on any possible investigations that may or may not exist.'
"Web3 game companies are also in trouble?! Immutable received a Wells Notice from the SEC, and the next step may lead to a lawsuit" was first published on (Block Customer).
