The United States Securities and Exchange Commission (SEC) has issued a Wells notice to Immutable, the maker of an Ethereum gaming platform, indicating that it could face enforcement action. The SEC also sent a letter to the company's CEO and the Digital Worlds Foundation, which helped issue Immutable's IMX token, detailing alleged violations of securities laws. Immutable believes the allegations are related to IMX token sales in 2021, although the SEC did not specify the misconduct. The SEC has accused Immutable of making misrepresentations about the token's backing and pre-launch investment. This is the first known instance of the SEC threatening a crypto gaming firm. Immutable claims that its token is not a security. Immutable X is an Ethereum layer-2 scaling network used for certain transactions, staking, and platform governance. IMX has a market capitalization of $2.1 billion and is listed as the top gaming coin on CoinGecko. Immutable has raised $298 million through token sales and fundraising rounds. The company is prepared to defend itself, stating that it is well capitalized.



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