The United States Securities and Exchange Commission (SEC) has issued a Wells notice to blockchain gaming platform Immutable, potentially scrutinizing the listing and private sales of its IMX token conducted in 2021.
In a statement released on November 1, Immutable indicated that the SEC’s Wells notice came sooner than anticipated. The agency had previously informed the company that it would receive a notice “within the week” but delivered it just hours later. Immutable described the notice as vague, consisting of “fewer than 20 words of material explanation,” and providing little substantial information regarding the focus of the investigation.
Immutable believes the SEC’s claims primarily target the “listing and private sales” of the IMX token in 2021. Following the notice, the SEC reportedly initiated a phone call with Immutable, raising concerns about a blog post from 2021 that discussed Huobi Ventures’ early investment in IMX at a pre-launch price of $0.10, which was purportedly issued at a “$10 pre-100:1 split.” The SEC suggested that there had been no “exchange of value” in this investment.
However, Immutable refutes this claim, asserting that the investment was legitimate and supported by “real consideration.” The firm expressed confidence in its stance regarding the classification of the IMX token, countering what it perceives as the SEC’s broad assertions that many tokens within the industry qualify as securities.
In its statement, Immutable called for an “robust conversation to clarify facts” and indicated a readiness to challenge the SEC’s enforcement tactics if necessary. Immutable co-founder Robbie Ferguson reiterated the company’s commitment to defending digital ownership in gaming, aligning with other firms like Robinhood and OpenSea that have faced similar challenges from the SEC.
The issuance of a Wells notice does not automatically lead to formal action, but it has negatively impacted the market, with the price of the IMX token declining over 14% at the time of reporting.
Under the leadership of Chair Gary Gensler, the SEC has actively pursued various cryptocurrency firms for allegedly violating securities laws. This aggressive regulatory stance has led to backlash from U.S. policymakers who argue that Gensler’s approach has created confusion in the digital asset sector with terms like “crypto asset security.” Recently, the SEC also issued a Wells notice to Crypto.com, prompting the company to file a lawsuit against the commission in response.
Related topics:
Denmark Proposes Taxation on Unrealized Crypto Gains by 2026
Radiant Capital Hacker Transfers $52M in Stolen Funds to Ethereum
