IMX Token Plummets After Immutable Receives Wells Notice

Immutable, the Web3 gaming company, disclosed that it received a Wells Notice from the U.S. Securities and Exchanges Commission (SEC) on Oct. 31, and its token is taking a beating as a result.

Immutable’s native token, IMX, is down nearly 14% in the last 24 hours, falling to $1.13 from $1.3 prior to the announcement.

Immutable is now the latest in a long list of Top 100 cryptocurrency projects to receive Wells Notices from the SEC, which notify the company of an impending investigation and potential enforcement action related to violations of securities laws.

In 2024 alone, the SEC served Wells Notices to OpenSea, Robinhood, and Crypto.com. Entities such as Consensys, Coinbase, and Crypto.com are now entangled in legal battles with the SEC in an effort to combat the commission’s “unlawful” regulation by enforcement approach to crypto.

According to a blog post, the notice did not specify the Commission's claims of securities law violations, but the company believes the claims are pertinent to the listing and private sales of IMX in 2021.

“We’ve seen continuous escalation from the SEC in the types of accusations it’s bringing as part of its latest tactic to find traction against the crypto industry,” reads the post.

Immutable co-founder Robbie Ferguson said, “Immutable has received a Wells notice from the SEC, the latest in their approach of regulation by enforcement. We’re ready to do our part, join the companies fighting for crypto, and defend digital ownership in gaming.”