US SEC Issues Wells Notice to Blockchain Gaming Platform Immutable
The US Securities and Exchange Commission (SEC) has served Immutable, a prominent blockchain gaming platform, with a Wells Notice, alleging securities law violations. This notice, typically a precursor to formal enforcement action, joins a growing list of Web3 companies targeted by the agency’s regulation-by-enforcement approach.
Immutable’s Response to Abrupt Wells Notice
Immutable expressed frustration over receiving the Wells Notice in a blog post on November 1st. According to the platform, the notice alleges non-specific securities law violations and possible misrepresentations. Immutable claims that the SEC deviated from its standard process by issuing the Wells Notice with minimal detail and without prior discussions.
The Wells Notice is notable for its abruptness, lacking the in-depth explanation typically expected in such cases. Immutable speculates that the allegations may pertain to its IMX token listing from 2021. The platform has questioned the SEC’s intentions, especially given the timing near the US election.
Immutable Vows to Fight Back
Immutable joins industry giants Coinbase, Consensys, Ripple, OpenSea, Uniswap Labs, Bittrex, and Crypto.com, which have received a Wells Notice from the securities regulator. Several players have pushed back, arguing against the regulator. Immutable asserts that it remains well-capitalized and prepared to build for the future of gaming, with a large war chest to fight back if needed.
The IMX token price declined by over 14% in the last 24 hours, falling below $1.40. Immutable remains confident that the IMX token is not a security, stating, “Despite the SEC indiscriminately claiming that tokens across the industry are securities, we are confident the IMX token is not.”