Immutable announced that the SEC sent an expedited notice to Wells, stating that the notice was not clear enough and the allegations against the company were not detailed.

In Immutable’s blog statement dated November 1, it was stated that after the first meeting with the SEC, they were informed that a Wells notification would be sent, but the notification was sent “within a few hours”, not “within the week”.

Immutable stated that the notice sent by the SEC contained only “legal provisions” and provided only “less than 20 words of material disclosure”, stating that this was not enough for them to understand the focus of the investigation.

The company explained that this situation suggests that the SEC’s allegations are aimed at the IMX token listing and private sales in 2021.

Shortly after sending the notice, the SEC had a phone call with Immutable and brought up an agreement that Immutable made with Huobi Ventures in 2021.

Immutable announced the details of this agreement in a blog post that year. According to the post, Huobi Ventures had made an investment in the IMX token at its pre-launch price of $0.10.

While the SEC claims that Immutable made a statement that there was “no value exchange” in the agreement, Immutable denies this claim and argues that the investment was made for real value. While Immutable opposed the SEC’s claim, it stated that the investment in question was “backed by intrinsic value.”

Immutable emphasized that it is confident in its position regarding the classification of the IMX token, stating that the SEC tends to characterize many of the tokens in the sector as “securities”.

The company stated that it was ready to object to the SEC’s enforcement approach, arguing that a “comprehensive discussion” was needed to clarify the facts. Robbie Ferguson, co-founder of Immutable, also emphasized that they are determined to defend digital ownership rights against the SEC.

Ferguson noted that Immutable may collaborate with other industry leaders, such as Robinhood and OpenSea, in defending itself against the SEC’s allegations.

The SEC’s notice of Wells does not mean that a formal lawsuit will be filed; However, upon hearing of this development, there was a decline of more than 14% in Immutable’s IMX token. Under the leadership of SEC Chairman Gary Gensler, the SEC has recently taken a strict regulatory approach towards crypto companies.

This approach, which specifically aims to make crypto assets compliant with securities laws, has also received some criticism among US policymakers. It is claimed that Gensler created confusion in the industry by using new terms such as “crypto asset security”.

Despite this, the SEC continues its efforts to maintain order in the industry by tightening its controls against crypto companies.

Recently, the SEC sent a similar Wells notice to crypto exchange Crypto.com. Crypto.com disputed this notice and filed a lawsuit against the regulator.

While these developments are seen as a reflection of the increasing regulatory pressure on the sector, the issue of the regulators’ efforts to make the sector safer and the extent to which the regulations can be implemented without hindering innovative solutions continues to be discussed.

Leading crypto companies such as Immutable state that they will continue to fight to defend their digital asset rights, while demanding that the necessary steps be taken to eliminate the uncertainties in the sector.