Immutable says it has received a warning from the SEC related to the issuance and sale of IMX tokens.
The SEC implicitly accuses Immutable's IMX token of being a security. Image: Immutable
Blockchain gaming Immutable (IMX) in the early morning of November 1, 2024 said it had received a Wells Notice warning from the U.S. Securities and Exchange Commission (SEC), accusing the project's currency IMX of being a form of disguised security.
A Wells Notice is a warning notice typically sent by the SEC to alert a business of a violation and that the securities commission may take legal action.
Immutable has received a Wells notice from the SEC, the latest in their de facto policy of regulation by enforcement. We received this within hours of our first ever conversation, on a timeline clearly accelerated to land before an election.
— Immutable (@Immutable) October 31, 2024
Sadly, stories like this are becoming…
Immutable claims that before receiving the warning, the project's lawyers had been discussing with SEC representatives for months to clarify the nature of the issue, but when they met directly, the SEC immediately sent the Wells Notice to Immutable.
However, the SEC's notice did not clearly state the nature of the violation and the reason for the investigation, forcing Immutable to speculate that the securities commission is targeting the IMX token.
In a subsequent video conference with SEC representatives, the securities commission cited a 2021 post by Immutable, claiming the project had provided inaccurate information about investing in IMX.
Immutable insists that the IMX token is not a security and is ready to go to court to defend its interests.
The IMX token price is currently down nearly 13.5% after Immutable's announcement of the SEC warning.
1-hour chart of the IMX/USDT pair on the Binance exchange at 08:25 AM on November 1, 2024
In recent months, the SEC has repeatedly issued Wells Notices to many major companies in the cryptocurrency industry, including the exchange Crypto.com, the Non-Fungible Token (NFT) exchange OpenSea, the trading app Robinhood, the decentralized exchange (DEX) Uniswap, the exchange Kraken, the MetaMask wallet developer ConsenSys, and at least 3 cryptocurrency investment funds.
Compiled by Coin68
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