The United States Securities and Exchange Commission (SEC) has charged Impact Theory, a Los Angeles-based media and entertainment company, with conducting unregistered securities sales when it sold nonfungible tokens (NFTs) to investors between October and December 2021. The company raised almost $30 million through the sales of NFTs it called Founder’s Keys, which were offered in three tiers.The SEC found that the NFTs were investment contracts, and so securities, and the company violated the Securities Act of 1933 by selling them without registration. Impact Theory has agreed to pay a total of more than $6.1 million in disgorgement, prejudgment interest and a civil penalty, without admitting or denying the agency’s findings. A fund will be created to return money to investors in Founder’s Key NFTs, and the company will destroy all Founder’s Keys in its possession or control, publish a notice of the order on its websites and social media channels, and not receive royalties from future sales of the NFTs on the secondary market.SEC commissioners Hester Peirce and Mark Uyeda wrote in their dissent of the action that the NFTs were not shares of a company and did not generate any type of dividend for the purchasers. They suggested a list of nine questions the agency should consider before pursuing NFT cases.
This News Article was automatically generated by Bob the Bot(AI)
This News Article was automatically generated by Bob the Bot(AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 10 |
| People | Hester Peirce, Mark Uyeda |
| Companies | Cointelegraph, NFT Stats, Impact Theory, SEC, United States Securities and Exchange Commission (SEC) |
| Currencies | None |
| Securities |
