SEC vows to fight back after ‘sprinkled and prayed’ Wells announcement

Crypto gaming platform Immutable has vowed to fight any enforcement action from the United States Securities and Exchange Commission after receiving Wells' notice.

In a statement issued on November 1, Immutable did not disclose the SEC charges in the announcement, but it believes the agency's claims are aimed at a “listing and private sale” of its homegrown IMX token in 2021.

A number of companies have received Welsh announcements this year, including OpenSea, Crypto.com and Uniswap.

Gaming Forum previously said it had a ten-minute call with the SEC shortly after Wells' announcement.

In the subpoena, the SEC alleged that a 2021 Immutable blog post describing a pre-launch investment in IMX tokens at a price of $0.10, which implied a “$10 pre-100:1 dividend” was inaccurate and implied there was none. Price exchange between the parties.

“Once again, the SEC is wrong: it was a real assumption that they could learn from a constructive dialogue with the company,” Immutable said in response.

Wells Notice A formal letter issued by the SEC notifying a party that the regulator is considering enforcement action. Wells' announcement indicates that the SEC has completed its investigation and found evidence of violations of securities laws.

In addition, Immutable said he was unhappy with the way the regulator handled Wells' ad, saying the ad was dropped with little warning.

“There are months of interviews and discussions between the company's counsel and the SEC before the Wells announcement, so the SEC can better understand the situation,” Imtable said.

“Instead, in our first contact with the SEC, we were told that Wells' notice would be provided to the company within the week. We received it within hours.”

In response to the potential enforcement action, Immutable said it was “confident in its position” and would happily fight it.

Related: SEC Costs Crypto Firms $426M Under Gensler – Blockchain Association

Although the SEC claims that tokens in the industry are securities, we are confident that IMX tokens are not, Immutable wrote in a statement.

The gaming platform added that the SEC “sprayed and prayed” its legal action, giving Wells' announcement to CEO James Ferguson and the Digital World Foundation, the parent entity of its own IMX token issuer.

Following the SEC actions, the platform's IMX token price fell as much as 9% within an hour and is currently trading at $1.20, according to TradingView data.

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