A gaming platform focused on Web3, Immutable, has announced that the investigation by the U.S. Securities and Exchange Commission has concluded, and the company will not face any further actions.
Immutable, known for its Ethereum layer-2 solution ImmutableX, shared on March 25 that the SEC has ended its inquiry without identifying any misconduct, thereby resolving the Wells notice that was issued last year.
Back in November, the company disclosed that it received a Wells notice from the SEC, which indicates that the agency was contemplating enforcement action based on evidence of potential violations of securities laws.
Immutable’s president and co-founder, Robbie Ferguson, expressed his satisfaction with the SEC’s decision, calling it a significant achievement for both the cryptocurrency sector and the gaming industry as they move towards enhanced regulatory clarity.
A representative from Immutable informed that the SEC sent a letter terminating the investigation without providing reasons for its conclusion. The spokesperson noted that this letter was unexpected and implied that the SEC’s review of documents submitted by Immutable led to the inquiry’s closure.
In a blog post from November, Immutable had indicated that the SEC might be focusing on the 2021 “listing and private sales” of their IMX token.
Immutable’s update following the Wells notice received in November 2024.
Following the notice, the company reported having a brief discussion with the SEC regarding claims that a blog post from 2021, which mentioned a pre-launch investment in the IMX token priced at $0.10, contained inaccuracies and suggested there was no exchange of value.
Immutable maintained that they were “confident in their position” and intended to challenge the regulator’s assertions.
Recently, the SEC has ceased numerous ongoing and pending enforcement actions against crypto firms under the administration of Donald Trump, which sought to reduce the regulatory pressure on the industry.
Last month, the SEC also wrapped up investigations into various entities, including the NFT marketplace OpenSea, trading platform Robinhood, decentralized exchange developer Uniswap Labs, and cryptocurrency exchange Gemini.
Despite the SEC’s decision to halt the investigation involving Immutable, the Rosen Law Firm based in Manhattan has referenced the Wells notice as part of an effort to initiate a securities class-action lawsuit against the company regarding its IMX token offering, a matter that Immutable claims does not concern them.
In their announcement, Immutable stated that leading AAA gaming studios had previously pointed to legal and compliance uncertainties as significant obstacles to entering the Web3 gaming arena. However, they believe that a clearer regulatory landscape will foster greater investment and create new opportunities to tokenize the over $100 billion market for in-game purchases.
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