Deep Tide TechFlow news, on November 3, reported by Coingape, former U.S. SEC official Marc Fagel expressed concerns regarding the agency's recent issuance of a Wells Notice to Ethereum Web3 gaming company Immutable. Immutable stated that this was issued without prior communication or with limited explanation, which does not conform to the typically broader investigation procedures.
Fagel commented that it is uncommon for the SEC to issue such notices without conducting a thorough investigation first, indicating that this practice may be 'risky.' Typically, companies expect to engage in months of interviews or discussions before receiving a Wells Notice, and deviating from this standard practice could be seen as 'dangerous.'
Previously, it was reported that Ethereum gaming company Immutable received a Wells Notice from the U.S. SEC, accused of violating securities laws and may soon face enforcement action. Immutable stated in a statement that the regulatory agency also sent a letter to the company's CEO James Ferguson and the Digital Worlds Foundation, which helped issue the IMX token, detailing the alleged violations of securities laws. Although the company claims the SEC did not fully explain the alleged improper conduct, Immutable believes these accusations stem from the IMX sale in 2021. Additionally, the SEC accused Immutable of making false statements to the public regarding its token support, including 'pre-listing investments' in IMX.
