In a significant development for the Ethereum gaming space, Immutable has received a Wells notice from the U.S. Securities and Exchange Commission (SEC), warning the company of potential enforcement action. This marks the first known instance of the SEC targeting a crypto gaming firm.

Key Details:

1/Background: The SEC issued the Wells notice last month, indicating that Immutable could soon face legal action regarding alleged violations of securities laws. The notice was also directed to CEO James Ferguson and the Digital Worlds Foundation, which assisted in issuing the IMX token.

2/Allegations: While Immutable claims the SEC did not specify the alleged misconduct fully, they believe the allegations stem from IMX sales in 2021. At that time, Immutable reportedly raised over $12.5 million shortly after listing the token on CoinList.

3/SEC's Claims: The SEC has accused Immutable of making misrepresentations about the token's backing, including a purported "pre-launch investment" that the agency claims did not occur. Immutable's spokesperson emphasized their confidence that the IMX token does not qualify as a security.

Market Impact:

The IMX token, launched in November 2021, currently holds a market capitalization of approximately $1.9 billion. Following this news, the IMX token price has dropped by 13% within the past 24 hours.