The U.S. Securities and Exchange Commission (SEC) has issued a Wells Notice to Immutable over its IMX token sales that took place in 2021. This notice was delivered with minimal explanation just hours after the initial interaction. Following the announcement, the price of the IMX token fell by more than 13%, reaching $1.16.
The Wells Notice seems to focus on regulatory issues surrounding the listing and private sales of the IMX token, which involved Huobi Ventures. Immutable, the company behind the IMX token, has strongly disputed the SEC’s approach, referring to it as "regulation by enforcement."
This move by the SEC has sparked controversy as Immutable claims that the regulatory body is acting without merit and refuses to provide a detailed explanation of their decision and rule-based reasoning.
The incident has implications for the broader regulation of token sales and the approach taken by the SEC, highlighting challenges faced by crypto companies navigating compliance in an evolving regulatory landscape.