Former SEC Official Expresses Concerns Over Wells Notice Issued To Immutable

According to Odaily, former U.S. SEC official Marc Fagel has expressed concerns regarding the recent Wells Notice issued by the agency to Ethereum-based Web3 gaming company Immutable. Immutable stated that the notice was issued with limited prior communication or explanation, deviating from the usual extensive investigative procedures. Fagel noted that it is uncommon for the SEC to issue such notices without a thorough investigation, suggesting that this approach could be 'risky.' Typically, companies expect several months of interviews or communications before receiving a Wells Notice, and deviating from this standard practice might be considered 'adventurous.' Previously, it was reported that Immutable received a Wells Notice from the SEC, accusing the company of potential securities law violations, which may soon lead to enforcement actions. In a statement, Immutable mentioned that the regulatory body also sent a letter to the company's CEO, James Ferguson, and the Digital Worlds Foundation, which assisted in issuing Immutable's IMX tokens, detailing the alleged securities law violations. Although the company claims that the SEC did not fully explain the alleged misconduct, Immutable believes the accusations stem from the 2021 IMX sale. Additionally, the SEC accused Immutable of making false statements to the public regarding its token support, including 'pre-listing investments' in IMX.