Blockchain gaming platform Immutable says it’s received a Wells notice from the US Securities and Exchange Commission (SEC).
In this manner, it’s joined the likes of blockchain outfits ranging from Coinbase to Consensys, Ripple, OpenSea and Crypto.com who are in the cross-hairs of the SEC as it looks to escalate its anti-crypto message in the lead up to the US presidential election.
A Wells notice means that the SEC is alleging violations of securities laws and regulations that might lead to a lawsuit. In the case of Immutable, the company believes the SEC is targeting the listing and private sales of IMX tokens back in 2021, although this was not specified in the notice. Indeed, it was notably sparse on actual details, with “fewer than 20 words of material explanation.”
After receiving the Wells notice, the SEC briefly called Immutable to clarify that the allegations were based on a blog post from 2021 “stating a pre-launch investment (from Huobi) made in the IMX token at a price of $0.10 ($10 pre 100:1 split) was inaccurate, and implied there was no exchange of value between the parties.”
Although Immutable says the allegations are frustrating, it adds that it’s business as usual as “we’re going to continue doing what we do best – building products and services for games and players.”
Immutable co-founder and CEO Robbie Ferguson added, “We’re ready to do our part, join the companies fighting for crypto, and defend digital ownership in gaming.”
Supported by similar lawsuits previously raised, and failed, by the SEC, Immutable also points to a series of examples such as Ripple, Ethereum, and Grayscale. This is the first one directed at a web3 gaming-centric entity however.
In a final comment, it clarifies that “We welcome regulation that is fair and well thought-out, and we have been actively engaged in industry forums to drive these outcomes.”
As a result of the news, IMX has fallen 15% to $1.16 over the last 24 hours.
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