Immutable Slams SEC's 'Regulation-by-Enforcement' Policy After Receiving Wells Notice

The SEC has issued a Wells notice to blockchain gaming platform Immutable in what has become a widespread crackdown on crypto companies ahead of the US election.

United States market regulator, the Securities and Exchange Commission (SEC), has issued a Wells notice to blockchain gaming platform Immutable.

The move comes amid a broader clampdown by the SEC on crypto companies in the lead-up to the US election.

Immutable disclosed the development in an Oct. 31 blog post, stating that the SEC’s action marks the latest instance of its “regulation-by-enforcement” policy targeting the crypto industry.

The network added that the watchdog issued the notice without any prior discussions or interactions with Immutable.

The SEC’s allegations, although vague, appear to center on the 2021 listing and private sales of Immutable’s native token, IMX, according to the company’s statement.

However, Immutable maintains that the IMX token does not meet the criteria of a security and that the regulator’s actions areEhh, surprising to say the least.

“To manufacture a case on a listing that occurred in 2021, with practically no direct communication with the company, is precisely the reason the industry is so skeptical of any attempts from this SEC to argue it is attempting to provide clarity.”

Immutable’s statement suggests that the SEC’s allegations, although not specifically outlined in the Wells notice, appear to focus on potential securities law violations related to the listing and private sales of its IMX token in 2021.

The company expressed dissatisfaction with the limited detail provided by the SEC in the notice, which included less than 20 words of substantive explanation and lacked a clear basis for the investigation.

Moreover, Immutable highlighted that the SEC’s notice contained allegations of “fraudulent misrepresentations” regarding a 2021 blog post that disclosed the IMX token’s pre-launch investment pricing.

According to the company, the regulator mischaracterized this information, claiming that there was no “real consideration” for the investment, which could have been clarified if the SEC had engaged in constructive dialogue with Immutable prior to issuing the notice.

Immutable boasts a war chest of over $250 million and a large team of lawyers, which it says it is prepared to deploy in defense of the rights of builders, creators, and gamers.

The company’s statement concludes by reaffirming its commitment to the industry and vowing to “keep building” despite the regulatory challenges.

Assad Jafri

AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.

News Desk

CryptoSlate is a comprehensive and contextualized source for crypto news, insights, and data. Focusing on Bitcoin, macro, DeFi and AI.

TRON Returns to Nigeria for TRON Connect Africa Community Event

Latest Press Releases

Mawari Announces Node Sale to Bring Immersive Content to the World

Nexo Unveils Strategic Rebrand as a Premier Digital Assets Wealth Platform

Yat Siu, Co-Founder and Chairman of Animoca Brands, to Address Web3 Gaming at Global Blockchain Show in Dubai

The above is the detailed content of Immutable Slams SEC's 'Regulation-by-Enforcement' Policy After Receiving Wells Notice. For more information, please follow other related articles on the PHP Chinese website!