Immutable vows to challenge SEC’s Wells Notice amid token listing allegations

Blockchain gaming platform Immutable asserts its intention to defend its interests and those of the industry if the SEC pursues enforcement action. The gaming platform has already received a Wells notice from the commission, which typically serves as a preliminary warning before legal action is taken.

The company argued that the notice did not clearly outline the alleged violations; however, it expects the commission to focus on the IMX token listing and its private sales.

Immutable received a Wells Notice just hours after its first meeting with the SEC

L2 video gaming company Immutable shared frustrations over the US Securities and Exchange Commission’s Wells Notice issuance. According to the company, the Wells Notice they received lacked specificity on its alleged misconduct and misrepresentations, calling out the regulator for its tendencies to broadly classify tokens as securities. 

Despite the notice’s vagueness, Immutable believes the commission may target its IMX token listing and sales.

Immutable also claimed that the commission gave them the Wells Notice without a proper warning, receiving it just hours after their first conversation. The company believes the regulator expedited the notice’s issuance, aiming to complete it before the election began.

The platform stated:

“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. 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

The company also asserted that the notice failed to specify details about the nature of the investigation, only outlining a few statutory provisions and providing less than 20 words of substantive explanation.

Moreover, the company called out the commission on its tactics, claiming it sprayed and prayed by issuing Wells notices to its CEO, James Ferguson, and to the Digital Worlds Foundation, the parent entity of the issuer of the IMX token.

Immutable points out the SEC’s inaccuracies, pledging to fight for its interests

According to Immutable, in a ten-minute call with the commission after the notice was issued, the SEC claimed that a 2021 blog post about a pre-launch investment in the IMX token at $0.10 was misleading. However, Immutable has tagged this as inaccurate, arguing the commission would have learned of the actual considerations involved if they had communicated with the company earlier about their concerns.

The company even declared it would fight for its rights and those of the industry if need be, stating it is confident in its position and the benefits digital asset ownership can have for its 3.1 billion users worldwide.