- The SEC issues a Wells Notice to Immutable, targeting the company’s native token, IMX.
- Immutable remains confident in IMX’s status and expresses readiness to combat SEC’s claims.
- The platform expressed dissatisfaction with the SEC’s sudden enforcement with minimal warning.
The US Securities and Exchange Commission (SEC) has sent a Wells Notice to Immutable, the Australian crypto gaming platform, without specifying the allegations. In response, Immutable suggested the SEC may be targeting the company’s native IMX token. The platform also expressed confidence in its stance and said it is ready to contest the regulator’s claims.
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In an official blog, Immutable said it received a ten-minute call from the SEC, informing the platform of the agency’s enforcement action. Immutable said the SEC pointed to a 2021 blog post about a pre-launch investment in IMX tokens, calling it inaccurate. The agency claimed that Immutable’s statement about the IMX token’s pre-launch sale price of $0.10 (later split to $10) misrepresented the transaction, implying no actual value was exchanged. In defense, Immutable argued, “The SEC is incorrect: there was real consideration, which they would have learned through a constructive dialogue with the company.”
Immutable Questions SEC’s Approach
The company expressed dissatisfaction with the SEC’s sudden issuance of the Wells Notice. Immutable remains disappointed with the SEC’s unconventional way of handling the case. Typically, the SEC has months of discussions and interviews with company counsel to thoroughly understand the situation before issuing a Wells Notice. However, in Immutable’s case, the SEC abruptly warned the company about the Wells Notice during their initial conversation.
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The SEC has labeled several prominent tokens, including XRP, BNB, and Solana, as securities. However, after long-fought battles, the court dismissed the SEC’s security allegations against these tokens. Immutable reaffirmed its confidence in the IMX token’s non-security status, stating, “Despite the SEC claiming that tokens across the industry are securities, we are confident the IMX token is not.”
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