TechFlow news — On November 1, according to Decrypt, blockchain gaming company Immutable announced it has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), which non-specifically alleges violations of securities laws and false statements.
With this action, the SEC continues its broad stance asserting that tokens are securities. Although the notice does not specify details, the company believes the allegations relate to the 2021 listing and private sale of IMX.
Immutable maintains that the IMX token does not fall under the definition of a security.
TechFlow note: A Wells Notice is a formal notification issued by the U.S. Securities and Exchange Commission (SEC) indicating its intent to bring an enforcement action against an individual or company. It informs the recipient that the SEC’s enforcement division has concluded its investigation and believes there is sufficient evidence to support legal action. Upon receiving a Wells Notice, the recipient has the opportunity to submit a written response within a specified period explaining why enforcement action should not be taken.
