Nov 1, 2024
6thTrade
Blockchain gaming company Immutable recently disclosed that it’s on the SEC’s radar, potentially facing enforcement action over alleged securities law violations. According to Immutable, the SEC quickly issued a Wells notice, which is a formal warning that enforcement action may be forthcoming. $IMX
Immutable shared that while the SEC typically engages in extended discussions and interviews before issuing a Wells notice, this wasn’t the case here. The company stated, “In our very first interaction with the SEC, we were told a Wells notice would be issued to the company within the week. We then received it within hours.” Immutable believes the scrutiny might be related to IMX token listings and private sales conducted back in 2021. However, the company noted that the notice itself was short on specifics.
Interestingly, Immutable also acknowledged that while there have been related inquiries from the Department of Justice, there hasn’t been any formal legal action proposed by the DOJ.
Immutable is far from alone. Over the past year, several crypto firms like Robinhood Crypto, Crypto.com, and OpenSea have received similar Wells notices. The SEC has pursued enforcement actions against major players like Coinbase and Kraken, with SEC Chair Gary Gensler emphasizing that crypto firms must register and comply with existing investor protections.
However, the digital asset industry has been vocal in pushing back, arguing that current rules don’t fully fit the digital asset landscape. Immutable, for its part, maintains that IMX doesn’t qualify as a security and is ready to defend its position if necessary. “We are confident in our position, in the value digital ownership can bring to 3.1 billion gamers across the world, and in the power of blockchain to create a better internet,” the company stated in a recent social media post. Immutable has pledged to “fight for these rights, and those of our industry, vigorously” if it comes down to it.
The SEC has yet to comment on the matter.