The US Securities and Exchange Commission (SEC) has filed a Wells Notice to Immutable over its sales of IMX tokens. The SEC’s contention is related to a 2021 blog post on the pre-launch investment made in the IMX tokens priced at $0.10 or a $10 pre-100:1 split.
Immutable has questioned the SEC’s judgment, saying that the price was inaccurate; thus, the charge is “incorrect” since no exchange happened between parties.
Immutable (IMX) was one of the popular gaming-focused projects in 2021, a time of the growing popularity of play-to-earn (P2E) blockchain projects. The blockchain project featured an NFT marketplace and an L2 scaling solution, primarily serving third-party game developers.
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.
Sadly, stories like this are becoming…
— Immutable (@Immutable) October 31, 2024
Wells Notice Targets ‘Sale Of IMX Tokens’
Immutable is a leading Australian blockchain that launched a $320 million pre-sale. Around 14% of the IMX tokens went to the public. SEC believes that the same IMX tokens during its launch violated some laws, hence the decision to file the notice.
In the US, companies and individuals may receive a Wells Notice from the agency if they are investigated for possible violations. Immutable immediately responded to the notice, saying that the agency was deliberately harsh on start-ups despite little evidence of wrongdoing.
Upon issuance of the notice, the agency contacted the company for a conversation. With a Wells notice filed, Immutable may face a lawsuit soon.
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Author: Christian Encila
