US regulators have ordered a Los Angeles-based company that issues a non-fungible token (Non-Fungible Token) to compensate investors who purchased Non-Fungible Token, since the transactions were an active one. illegal offering of unregistered securities. This is the first Non-Fungible Token related enforcement action by the US Securities and Exchange Commission (SEC).
The SEC's finding does not suggest that regulators treat all Non-Fungible Token as securities, limiting the potential consequences of this action.
According to a statement Monday from the market regulator, Impact Theory, a California-based media company, raised nearly $30 million from the sale of three levels of Non-Fungible Token services that the SEC considers a stock. Non-Fungible Token qualifies as a security because Impact Theory's team has promised investors to profit from the collectibles, touting their "enormous value."
Impact Theory has agreed to set up a fund to refund investors who purchased Non-Fungible Token and destroy any Non-Fungible Token they own. The company will also have to pay more than $6.1 million in fines to federal regulators, according to the order.
Source: Coindesk
