Breaking: Immutable Receives Wells Notice From US SEC

Immutable, the blockchain protocol designed for the next-generation of Web3 games said it has received a Wells Notice from the US Securities and Exchange Commission (SEC). The startup unveiled this in a recent update, a proof of the regulation by enforcement tactics of the markets regulator.

Immutable Next on US SEC List

After a year-long crackdown moves in the digital currency ecosystem, one might think the US SEC will slow down ahead of the elections. However, Immutable revealed in its announcement that the regulator now alleges it might have violated Federal Securities laws over its native token IMX.

They expressed frustration with the Wells Notice, and noted that it is ready to fight for its rights if required. The firm further claimed that it has held several conversations and interviews with the Commission. Most often, these meetings hinges on helping the SEC understand Immutable’s situation. In its blog post, the blockchain protocol noted that it received a pre-informed scoop of the coming of the Wells Notice.

“Instead, in our very first interaction with the SEC, we were told a Wells notice would be issued to the company within the week. We then received it within hours,” Immutable wrote.

The SEC is likely to add claims of the listing and private sales of IMX in 2021. For now, Immutable is not certain about this considering that the Wells Notice included very sparse details.

OpenSea, Crypto.com And Others Receive Wells Notice From SEC

Notably, OpenSea also received a Wells Notice from the markets regulator in August. Devin Finzer highlighted that the markets regulator implied that the digital collectibles traded on the platform are securities. Also, Cryptocom received a similar document from the SEC but did not give it a chance to settle before filing a legal action against the regulator.

Cryptocom believes that this US agency is greatly overreaching its jurisdiction. Hence, its decision to sue the SEC was aimed at adding its voice to the many crypto firms pushing back against overreach by a federal agency acting beyond its authorized powers.

Other firms that have recently received a Well Notice from the SEC these past few months are Robinhood, Kraken,  ConsenSys, and Uniswap. Together, they may eventually nib Gary Gensler and his administration in the bud if the choose to fight and the court favors them.