Immutable becomes latest company to receive Wells notice from SEC regarding securities law allegations

Immutable claims the notice “targets IMX's listing and private sale in 2021.” Immutable joins Coinbase Crypto.com, OpenSea, and others who have received Wells notices from the SEC. , is said to contain less than 20 words of important description.

Immutable has been issued a Wells Notice by the U.S. Securities and Exchange Commission (SEC) alleging securities law and misrepresentations by the company.

In a post from the blockchain gaming platform, the company said it believes “the claims target IMX's listing and private sale in 2021,” although nothing is specified in the notice. Immutable added: “With this action, the SEC will continue to assert indiscriminately that tokens are securities.”

Immutable says it believes the IMX token is not a security.

A growing list of targeted companies

When the SEC issues a Notice of Wells, it generally indicates that the SEC is considering filing a lawsuit against a company. If this happens, Immutable would join a growing list of companies in the crypto industry that have filed or are suing the SEC.

Last July, Ripple won its lawsuit against the SEC when Judge Annalisa 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, accusing it of operating as an unregistered broker-dealer and offering unregistered securities.

Other cryptocurrency organizations that have received wells notices from the SEC include Coinbase, Crypto.com, and OpenSea.

“With this latest move against Immutable, the SEC's excesses extend to gaming,” Immutable said.

Immutable says the Wells notice before the U.S. election explains why “the industry is highly skeptical of the SEC's purported attempts to provide clarity.”

“Prior to the issuance of a Notice of Wells, there are often months of meetings and conversations between the company’s lawyers and the SEC, so the SEC can fully understand the situation,” Immutable added. . “Instead, during our initial communication with the SEC, we were told that a Wells Notice would be issued to the company within a week. We then received it within hours.”

Immutable said the notice cited only “legal provisions” and contained less than 20 words of “material explanation.”