SEC Issues Wells Notice To Ethereum Gaming Company Immutable

According to PANews, the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice to Ethereum gaming company Immutable last month, indicating potential enforcement action. The notice also targeted Immutable's CEO James Ferguson and the Digital Worlds Foundation, which assisted in issuing Immutable's IMX tokens, for alleged securities law violations. Immutable stated that while the SEC did not fully detail the alleged misconduct, the company believes the charges stem from the 2021 IMX token sale. At that time, Immutable announced on Twitter that it had quickly raised at least $12.5 million following the IMX token's listing on the CoinList platform. The SEC also accused Immutable of making false statements to the public regarding its token support, including claims about pre-listing investments in IMX. An Immutable spokesperson commented, 'Despite the SEC's broad assertion that all industry tokens are securities, we are confident that IMX tokens are not. The notice only cited statutory provisions and contained limited meaningful details. With this latest move against Immutable, the SEC's overreach has now extended into the gaming sector.'