IMX token loses 15% amid SEC enforcement threat
IMX token loses 15% amid SEC enforcement threat
The Immutable (IMX) token has dropped almost 15% in the past 24 hours to $1.15 after it was revealed that the U.S. Securities and Exchange Commission (SEC) sent a Wells notice to the token's issuer, the gaming platform Immutable.
A Wells notice is a letter that the SEC uses to inform individuals and companies of its intent to take enforcement action against them for violations of the law.
Previously, similar notices from the SEC were received by Ripple Labs, Coinbase, and other cryptocurrency companies.
Although the document does not contain specific allegations, Immutable stated that the issues are likely related to the listing and private sales of the IMX token in 2021
.Is the SEC Rushing to Start Legal Proceedings?
Immutable is a scaling solution on the Ethereum blockchain designed for developing and hosting web3 gaming applications. The company, headquartered in Sydney, is backed by major investors including BITKRAFT Ventures, King River Capital, AirTree, Temasek, Coinbase, and others.
The group includes Immutable Games, which developed games like Gods Unchained and Guild of Guardians.
Currently, the platform is working on 400 projects, making Immutable the largest gaming platform in Asia.
Immutable noted that the notice came just a few days after its first meeting with the SEC, and the game developer was not even given the opportunity to present its case in a pre-trial setting. In many cases, it can take the SEC several months to prepare a Wells notice.
