Is Web3 Gaming the SEC's Next Target? Immutable Receives Wells Notice

• The SEC filed a Wells Notice against Immutable, signaling a possible lawsuit over IMX sales in 2021.
• Immutable claims aggressive enforcement threats and high legal costs hinder compliance efforts.
• IMX token dropped 8.76% after the SEC's warning, with trading volume spiking 140%.

After years of legal battles against altcoins, the United States Securities and Exchange Commission could be after crypto gaming next. 

On November 1st, the SEC filed a ‘Wells Notice’ against Web3 gaming developer Immutable. This type of filing generally serves as a preemptive measure indicating that the commission is getting ready to sue a company or individual. 

In a public statement, Immutable shared that – despite not being made clear the reason for the Wells Notice filing – the company believes that the SEC is targeting private IMX sales in 2021. The statement went on to claim that the SEC made “aggressive enforcement threats”, and that companies like Ripple and Immutable are doing their best to clear compliance guidelines – but instead have to endure legal battles against the commission that cost millions of dollars in legal fees.

The Web3 gaming firm also spoke about its openness to conversations with the SEC – including stating that Immutable was open to having meetings with the commission to better understand the case. But instead received a Wells Notice filing on its first interaction with Gary Gensler’s commission.

IMX Plunges After SEC Warning

Even on a bearish day after a weak U.S. Jobs Report – Immutable’s native token $IMX suffered heavy effects from the company’s first interaction with the securities commission.

The token is currently trading at $1.12 at this time of writing, down by 8.76% over the past 24 hours. Interestingly, volume increased by a whopping 140% in that same time frame, indicating massive and unexpected selling pressure on October 31st.

Weekly losses are even worse for immutable, with IMX falling by over 20% its value in that time. 

The company’s co-founder, Robbie Ferguson, went on X to claim that Immutable is ready to do its part in the case of upcoming legal proceedings.