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Crypto gaming company, Immutable, has vowed to fight any legal action by the US Securities and Exchange Commission (SEC), after receiving a Wells notice, a formal warning, over its IMX tokens. Immutable denied the SEC’s claim a blog post about a pre-launch investment was misleading, arguing the SEC had not communicated with them. Immutable declared its IMX token is not a security and criticised the lack of prior conversations before the notice was issued. The company’s CEO, James Ferguson, and the Digital World’s Foundation were also targeted, leading IMX token prices to drop by around 9%.

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The crypto gaming company, Immutable, has promised to stand up against any legal action from the US Securities and Exchange Commission (SEC). This comes after they were sent a Wells notice, a formal warning, from the regulator. Immutable thinks that the SEC might be concerning about how they sold and listed their IMX tokens in 2021.

A bunch of firms got this Wells notice this year, including Crypto.com, OpenSea, and Uniswap. After Immutable got their notice, they called the SEC. During the call, the SEC claimed a blog post by Immutable about a pre-launch investment in IMX tokens was misleading. They said it suggested there was no exchange of value between the parties involved.

As you’d expect, Immutable refuted these claims, saying if the SEC had talked to them, they would’ve known their accusations were wrong. A Wells notice, if you’re wondering, is a letter from the SEC saying they might take legal action against a company. It’s usually sent after the SEC has done an investigation and thinks the company might have broken securities laws.

Immutable said they weren’t happy with how the SEC issued the Wells notice. They said it came out of nowhere, without much warning. Apparently, before a Wells notice is issued, there are often lots of conversations and interviews with the company so the SEC can fully understand the situation. But in Immutable’s case, this didn’t happen, and they got the notice super quickly.

Immutable isn’t scared of potential legal action, and they said they will be ready to fight back. They also shared that while the SEC has made wide-ranging claims that tokens across the industry are securities, the IMX token is not.

They added that the SEC didn’t just target them, but also their CEO James Ferguson and the Digital World’s Foundation, which is involved with issuing IMX tokens.

After the SEC took action, their IMX token’s price fell by as much as 9% in an hour. It’s now being traded for about $1.20.

Source: Cointelegraph