Immutable Receives SEC Wells Notice Over Potential Securities Violations
Web3 gaming firm Immutable announced it received a Wells notice from the US Securities and Exchange Commission (SEC), indicating potential enforcement action against the company.
The SEC has alleged that Immutable violated securities laws and misrepresented itself to users. Immutable stated, “In our very first interaction with the SEC, we were told a Wells notice would be issued to the company within the week. We then received it within hours.”
While the SEC's investigation details remain vague, Immutable executives believe the focus is on the IMX token, which was privately sold in 2021. Following this announcement, IMX traded over 13% lower by 12 pm ET on Friday.
Immutable's response to regulators emphasizes the need for engagement and creation of clear industry rules: “Engage with the industry. Create clear and fit-for-purpose industry rules and regulatory guidelines, and we will follow them.”
This development coincides with other crypto companies facing scrutiny from the SEC. NFT marketplace OpenSea received a Wells notice in April regarding NFTs classified as securities. Additionally, Crypto.com filed a suit against the SEC after receiving a Wells notice over the summer, aiming to protect the crypto industry's future in the US.
An interesting stat:
- DeFi and crypto adoption is growing in Eastern Europe, with a Chainalysis report showing the region received over $499 billion worth of cryptocurrency between July 2023 and June 2024, accounting for 11% of the total global share.
Also of note:
- Bridge, which Stripe is acquiring for $1.1 billion, announced it purchased Web3 wallet infrastructure company Triangle for an undisclosed amount.
- Coinbase and Visa announced a partnership to integrate Visa Direct on the crypto exchange, enabling users to make deposits via Visa debit cards.