The US Securities and Exchange Commission (SEC) has charged Los Angeles-based media and entertainment company Impact Theory, LLC for allegedly offering unregistered securities in the form of NFTs.The SEC said that Impact Theory had raised over $30 million from investors in the United States, and had emphasized that it was “trying to build the next Disney” and that if successful, it would deliver “tremendous value” to Founder’s Key purchasers.As such, the NFTs were sold to investors as investment contracts, which makes them securities. Impact Theory therefore violated federal securities laws. The company has agreed to pay a fine of over $6.1 million, comply with a cease-and-desist order, refund affected investors, and destroy all the NFTs.The SEC’s action against Impact Theory is a first in the NFTs space, but continues a series of enforcement actions and settlements seen in recent months. These include lawsuits against leading crypto exchanges Binance and Coinbase. However, the regulator suffered a significant blow in July when US Judge Analisa Torres delivered a ruling that stated the cryptocurrency XRP is not a security. The SEC recently filed a motion seeking an interlocutory appeal.
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 | negative |
| Relevance Score | 9 |
| People | |
| Companies | US Securities and Exchange Commission, Coinbas, Impact Theory, SEC, Binance, LLC |
| Currencies | ethereum, nfts, bitcoin |
| Securities |
