SEC Targets Altcoin: IMX Faces Sharp Drop After Regulatory Notice

Blenda Rosen
By Blenda Rosen Add a Comment
3 Min Read

As the crypto market continues its rollercoaster journey, the U.S. Securities and Exchange Commission (SEC) remains actively engaged. In recent news, the SEC issued a Wells notice to Immutable, a blockchain gaming platform, indicating potential regulatory action. Immutable disclosed that this notification followed closely after an initial meeting with the SEC. The company believes that the SEC’s concerns may center on IMX’s 2021 listing and private sales, though the Wells notice reportedly provides limited details. Amid these developments, the token’s price has entered a downward trajectory.

SEC Targets Altcoin: IMX Faces Sharp Drop After Regulatory Notice = The Bit Journal

SEC’s Wells Notice Prompts IMX Price Decline

Immutable revealed that the SEC’s Wells notice arrived shortly after their meeting, signaling possible enforcement action. A Wells notice serves as an official warning that SEC staff may recommend enforcement action against a firm. In response, Immutable made the following statement:

“Receiving a Wells notice shortly after our initial meeting with the SEC, just ahead of the upcoming election, highlights the accelerated timeline for this regulatory approach. Unfortunately, these occurrences are becoming less surprising. Over the past two months, we have witnessed growing SEC scrutiny on firms like Coinbase, ConsenSys, Uniswap, OpenSea, and Crypto.com. With this latest move against Immutable, the SEC’s reach is extending further, even into gaming.”

SEC Targets Altcoin: IMX Faces Sharp Drop After Regulatory Notice = The Bit Journal

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Following the SEC’s notification, IMX fell from $1.36 to $1.15, recording a daily loss of over 15%. This decline was compounded by a notable 114% spike in trading volume, as traders and investors responded with increased sell orders.

Will Immutable Challenge the SEC?

Immutable believes the SEC’s claims may pertain to IMX’s 2021 listing and private sales, though details are limited. The company has also been informed of related Department of Justice (DOJ) inquiries, though no formal actions have been initiated. A representative stated, “The SEC does not comment on the existence or non-existence of any investigation,” while Immutable asserts that IMX is not a security and is prepared to defend its stance if necessary.SEC Targets Altcoin: IMX Faces Sharp Drop After Regulatory Notice = The Bit Journal

Immutable emphasized its confidence in blockchain’s value to the gaming sector, stating: “We believe in our position and in the value that digital ownership brings to 3.1 billion players worldwide. We are prepared to vigorously defend these rights and our industry’s rights if needed.”

As The Bit Journal has previously reported, several major crypto firms have recently received Wells notices, including Robinhood Crypto, Crypto.com, and OpenSea. The SEC has also taken enforcement actions against large firms like Coinbase and Kraken. SEC Chairman Gary Gensler has consistently urged crypto firms to register with the agency, emphasizing adherence to regulations and the importance of investor protection.

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Disclaimer

The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.

You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.

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Content Editor Hi there! My name is Blenda, and I'm a Personal Finance and Markets Reporter at California/USA Today. I graduated from San Jose State University with degrees in Business Administration and International Business, and I'm a Certified Public Accountant (CPA) in California.My passion is creating personal finance content that resonates with my readers. I know from experience how daunting managing personal finances can be, and I aim to provide actionable advice that people can use to improve their financial situations. Whether it's budgeting, saving, investing, or retirement planning, I'm here to help my readers make informed decisions about their money.
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