Immutable disclosed that it had received the Wells notice from the US SEC, accusing it of "overstepping its authority" in law enforcement

PANews reported on November 1 that according to Decrypt, a spokesperson for Ethereum game company Immutable revealed on Thursday that the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice to Immutable last month, warning the company that it may soon face enforcement action.

Immutable said in a statement that the regulator also sent a letter to the company's CEO James Ferguson and the Digital Worlds Foundation, which helped issue Immutable's IMX token, detailing alleged violations of securities laws. Although the company claims that the SEC did not fully explain the alleged misconduct, Immutable believes that the charges stem from the 2021 IMX sale. At the time, Immutable tweeted that the company quickly raised at least $12.5 million after the IMX token was listed on the CoinList platform. In addition, the SEC also accused Immutable of making false statements to the public about its token support. This included a "pre-IPO investment" in IMX.

An Immutable spokesperson said: “While the SEC indiscriminately claims that tokens across the industry are securities, we are confident that the IMX token is not, and the notice only cites statutory provisions and contains limited meaningful details. With the latest action against Immutable, the SEC’s overreach has expanded to the gaming sector.”