- Immutable says it received a Wells notice from the US SEC over potential securities law violations involving IMX
- The notice suggests the SEC may bring an enforcement action against Immutable
- Immutable believes the SEC’s claims could involve the listing and private sales of IMX in 2021
Immutable is a blockchain gaming platform that allows users to buy, sell, and trade NFT-based assets. It received concerning news from the SEC this week.
Background on Immutable
Immutable was founded in 2018 and is based in Australia. The company operates a layer-2 scaling solution on Ethereum called Immutable X (IMX), which is designed for NFT-based games.
Key Details of the Wells Notice
- Immutable received a Wells notice from the SEC shortly after its first meeting with the agency. A Wells notice indicates the SEC staff may recommend enforcement action.
- The notice seems to relate to the listing and private sales of IMX in 2021. However, Immutable said the notice contained sparse details.
- Immutable believes it did not violate securities laws and will defend its position if required. It asserts IMX is not a security.
Prior SEC Actions in Crypto
The SEC has aggressively pursued enforcement against crypto firms recently. Other recipients of Wells notices include Robinhood, Cryptocom, and OpenSea.
Some crypto companies argue it’s impossible to fully comply with SEC guidance, as the rules were designed for traditional financial entities. They want tailored crypto regulation.
Immutable’s Response
Despite the notice, Immutable remains confident in its position. It believes digital asset ownership will empower the 31 billion global gamers. The company says it will fight for its rights if the SEC pursues action.
The SEC did not respond to a request for comment on the situation. The Department of Justice is also reportedly making inquiries, but has not taken action against Immutable.
