- Immutable claims the notice is “targeting the listing and private sales of IMX in 2021
- Immutable joins the likes of Coinbase Crypto.com, and OpenSea who have received Wells notices from the SEC
- The notice is said to have contained less than 20 words of material explanation
Immutable has been issued with a Wells notice from the US Securities and Exchange Commission (SEC) alleging securities laws and misrepresentations by the company.
In a post from the blockchain gaming platform, it said that while nothing was specified in the notice, it believes its “claims are targeting the listing and private sales of IMX in 2021.” Immutable added that “with this action, the SEC is continuing to indiscriminately assert that tokens are securities.”
According to Immutable, they are confident that the IMX token is not a security.
Joins a growing list of targeted companies
For the SEC to issue a Wells notice, it’s generally indicative that the agency is thinking about bringing a lawsuit against a company. If it does, Immutable joins a list of companies in the crypto industry that have faced or are facing lawsuits against the SEC.
Last July, Ripple won a lawsuit against the SEC when Judge Analisa Torres ruled that XRP is not a security. In April, Consensys filed a lawsuit against the SEC to protect the Ethereum ecosystem. The SEC later sued Consensys alleging that the company operated as an unregistered broker-dealer and offered unregistered securities.
Other crypto organizations that have received a Wells notice from the SEC include Coinbase, Crypto.com, and OpenSea.
“With this latest move against Immutable, the SEC’s overreach has expanded into gaming,” Immutable said.
According to Immutable, the Wells notice before the US election illustrates why the “industry is so skeptical of any attempts from this SEC to argue it is attempting to provide clarity.”
“Prior to the issuance of a Wells notice, there are often multiple months of interviews and conversations between company counsel and the SEC, so the SEC can fully understand the situation,” Immutable added. “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 said that the notice only cited “statutory provisions” and had less “than 20 words of material explanation.”