SEC takes crypto company Immutable under fire

The SEC is now targeting the next heavyweight in the crypto world. Gaming firm Immutable is accused of violations of U.S. securities laws.

The U.S. Securities and Exchange Commission (SEC) and crypto-gaming firm Immutable are likely facing a lawsuit. From a press release it appears that the stock market watchdog has sent a so-called Wells Notice to the company. This is a formal statement announcing the SEC's intention to take legal action.

The SEC accuses Immutable of misinformation at the 2021 Token Presale. In a blog post was initially quoted a presale value of $0.1 each. However, it later spoke of $10 after a split in the ratio of 100 to 1. The SEC criticized that no real transfer of value would have taken place.

Immutable denies the allegations: "Once again, the SEC is wrong: There was indeed real consideration, something they could have understood through constructive consultation with us."

It seems likely that the case will go to trial. Among the 100 most valuable cryptocurrencies, the price of the proprietary token IMX is among the biggest losers. IMX lost more than 14 percent in 24 hours and currently stands at $1.15.

The SEC has been taking a hard line against the crypto world for years. Companies such as Coinbase, Kraken and Consensys have also come under scrutiny in the process. An estimate by the Blockchain Association suggests that crypto companies have paid about $426 million in fines since SEC Chairman Gensler took office.

According to a report from crypto research platform Social Capital Markets, the total number of fines imposed this year is as high as $4.68 billion.