Immutable Receives SEC Wells Notice Over 2021 IMX Token Sales, IMX Drops 13%

Oct 31, 2024, 11:05 PM

Ethereum gaming firm Immutable has announced that it received a Wells notice from the U.S. Securities and Exchange Commission (SEC). The notice suggests that the SEC is considering enforcement action against Immutable over its 2021 IMX token sales, alleging potential securities law violations and false statements. Immutable disputes the SEC's claims, asserting that IMX is not a security and expressing readiness to challenge any enforcement actions. The company also criticized the SEC's approach, describing it as 'regulation by enforcement' and calling for clearer guidance for the crypto gaming industry. Immutable noted that the notice came immediately after their first conversation with the SEC, and suggested that the timeline was accelerated to land before an election. Following the announcement, IMX token value fell over 13%.