SEC Takes Action Against Impact Theory In The First Ever NFT Enforcement
The Securities and Exchange Commission has charged Los Angeles-based entertainment company Impact Theory. The charges are on the grounds of conducting an illegal securities offering of non-fungible tokens that raised approximately $30 million. According to the SEC, Impact Theory sold three tiers of NFTs called “Founder’s Keys” to the public from October to December 2021, leading buyers to view the NFTs as an investment in Impact Theory ’s business success. However, the company failed to register the NFTs as sec urities or file the required disclosures as part of the sale. Also read: Hong Kong Launches First Crypto Trading Platform, HashKey SEC ordered Impact Theory to pay $6 million The SEC ordered Impact Theory to pay over $6 million in penalties and ill-gotten gains disgorgement for the unregistered securities sale. The company will also set up a fund to return money to the founder’s key buyers. This marks the SEC’s first en...