SEC Issues Wells Notice To Immutable Amid Crypto Crackdown

According to CryptoSlate, the SEC has issued a Wells notice to blockchain gaming platform Immutable, marking another instance of the regulator's enforcement actions against crypto companies ahead of the US election. Immutable revealed in an October 31 blog post that the SEC's move is part of its “regulation-by-enforcement” strategy targeting the crypto industry. The company noted that the notice was issued without prior discussions with the SEC. Immutable stated that the SEC's allegations, though vague, seem to focus on the 2021 listing and private sales of its native token IMX. The company contends that the IMX token does not meet the criteria of a security and criticized the SEC for bypassing meaningful dialogue. Immutable expressed frustration over the lack of detail in the Wells notice, which contained fewer than 20 words of substantive explanation and lacked a clear basis for the investigation. Additionally, Immutable suggested that the SEC's allegations implied inaccurate claims of “fraudulent misrepresentations” related to a 2021 blog post about the IMX token’s pre-launch investment pricing. The company argued that the regulator mischaracterized this information, stating that there was “real consideration” involved in the investment, which could have been clarified through constructive dialogue with the SEC. Immutable emphasized its readiness to defend the rights of builders, creators, and gamers, leveraging its considerable resources. The company reiterated its commitment to the industry and its intention to continue building despite regulatory challenges.