TechFlow News — The U.S. Securities and Exchange Commission (SEC) has charged Impact Theory, a media and entertainment company based in Los Angeles, with conducting an unregistered offering of crypto asset securities through NFTs.The company raised approximately $30 million from investors through this offering.
The SEC determined that the company encouraged investors to view the purchase of these Founder's Keys as an investment in the business, highlighting potential future profits. Impact Theory also emphasized its goal of building the "next Disney," promising substantial value for key founders.
Impact Theory has agreed to a cease-and-desist order finding it violated the registration provisions of the Securities Act of 1933, and is required to pay more than $6.1 million in penalties, pre-hearing interest, and civil fines. The order also establishes a Fair Fund to return funds paid by harmed investors for the NFT purchases. Impact Theory has agreed to destroy all Founder's Keys held or controlled by the company, post notice of the order on its website and social media channels, and cancel any royalty fees it might receive from future secondary market transactions involving Founder's Keys.
