Fresh off its initial dealings with the Securities and Exchange Commission (SEC), Immutable (IMX) received a Wells Notice. What do we know about the reason for this investigation?
SEC Issues Wells Notice to Immutable (IMX)
At the end of the week, Immutable (IMX), the company specializing in the on-chain video games sector, informed its community that it had received a Wells Notice from the Securities and Exchange Commission (SEC). After Crypto.com last month, this is the latest ecosystem player to be targeted by the government agency.
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
💡 What is security and what does it mean for cryptocurrencies?
In its press release, Immutable reports that the SEC has provided little clarification on the reason for this investigation, although it assumes that this may have something to do with the private sale of IMX tokens in 2021. Indeed, the company specifies that the notice in question would only contain 20 words of concrete explanations, the rest being only “ statutory provisions “.
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Furthermore, this warning was sent just after an initial contact between the Commission and Immutable:
Before a Wells Notice is issued, there are often several months of interviews and conversations between the company's lawyers and the SEC, so that the SEC can fully understand the situation. Instead, in our very first interaction with the SEC, we were told that a Wells Notice would be sent to the company within the week. We then received it within hours.
Just a few days before the American election, Immutable thus deplores the timing chosen by the SEC. However, it says it is confident in the legality of its assets and services, and says it will “fight vigorously”.
👉 Also in the news — Coinbase finds FDIC pressured US banks to avoid cryptocurrencies
After the formalization of this Wells opinion, the IMX token lost more than 12%. It is now trading at $1.09, down 0.09% over 24 hours at the time of writing.
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Source: Immutable
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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