TechFlow news, November 3 — According to Coingape, Marc Fagel, former U.S. SEC official, expressed concern over the agency's recent issuance of a Wells Notice to Ethereum Web3 gaming company Immutable. Immutable stated that the notice was issued without prior communication or with limited explanation, deviating from the typically broader investigative procedures.
Fagel commented that it is uncommon for the SEC to issue such notices without first conducting a thorough investigation, suggesting this approach could be considered "risky." In typical cases, companies expect months of interviews or communications before receiving a Wells Notice, and departing from this standard practice may be seen as "reckless."
Earlier reports indicated that Ethereum gaming firm Immutable received a Wells Notice from the U.S. SEC, alleging violations of securities laws and potentially facing imminent enforcement action. In a statement, Immutable said the regulator also sent letters to the company’s CEO, James Ferguson, and the Digital Worlds Foundation—the entity that helped launch Immutable’s IMX token—detailing alleged securities law violations. Although the SEC did not fully clarify the alleged misconduct, Immutable believes the charges stem from the IMX token sale in 2021. Additionally, the SEC accused Immutable of making false public statements regarding support for its token, including claims about “pre-listing investments” in IMX.
