The SEC has taken legal action against Impact Theory for selling unregistered NFTs, marking the first time the organization has considered NFTs as securities.
Impact Theory, a media and entertainment firm headquartered in Los Angeles, introduced three tiers of NFTs named Founder’s Keys, the values of which were based on rarity. An SEC investigation into the assets determined that they were “essentially” constituted investment contracts, classifying them as securities.
Charges Against Impact Theory
Impact Theory has consented to a cease-and-desist order without admission of guilt. The company is slated to pay penalties exceeding $6.1 million. Additionally, Impact Theory has agreed to dispose of all owned Founder’s Keys.
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