Immutable defends $10 IMX token against SEC enforcement

Immutable (CRYPTO:IMX), a blockchain gaming platform, announced it will challenge potential enforcement action from the U.S. Securities and Exchange Commission (SEC) following a Wells notice the company received on November 1. 

According to Immutable, the SEC did not detail specific allegations but appears to focus on “listing and private sales” of Immutable’s native IMX token in 2021. 

A Wells notice, typically signaling that the SEC is considering an enforcement action, often follows extended discussions and interviews. 

However, Immutable expressed frustration over the regulator’s approach, citing the brief notice period and the lack of prior dialogue. 

“Prior to the issuance of a Wells notice, there are often multiple months of interviews and conversations… Instead, in our very first interaction with the SEC, we were told a Wells notice would be issued…within hours,” stated the company. 

Immutable stated it engaged with the SEC via a short phone call, during which the SEC referenced a 2021 blog post from Immutable. 

The post had cited a pre-launch investment in IMX at $0.10, which, according to Immutable, was presented as an accurate valuation. 

The SEC reportedly argued that this post implied no exchange of value between parties. 

Immutable disputed this claim, arguing, “Once again, the SEC is incorrect: there was real consideration, which they would have learned through constructive dialogue.” 

Immutable underscored its confidence in the legality of the IMX token, asserting that the token does not qualify as a security under existing regulations. 

“Despite the SEC indiscriminately claiming that tokens across the industry are securities, we are confident the IMX token is not,” the company stated. 

Immutable plans to defend against the notice, which was also issued to its CEO James Ferguson and Digital World’s Foundation, the IMX token issuer's parent entity.

At the time of reporting, the Immutable (IMX) price was $1.18.