SEC Drops Investigation Into Immutable Without Explanation

YEREVAN (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Immutable, the company behind Ethereum layer-2 Immutable X, without providing an explanation. The company announced on March 25 that the SEC had sent a letter of termination, effectively ending the inquiry.

The SEC had issued a Wells notice to Immutable in November 2023, indicating that it was considering enforcement action. The notice suggested possible securities law violations related to the IMX token. The company said the SEC’s decision “closes the loop” on the matter.

A spokesperson for Immutable told  that the termination letter arrived unprompted. The SEC’s review of information provided by Immutable appeared to be the reason for closing the case. The spokesperson did not specify what details led to this outcome.

Immutable President Responds to SEC Decision

Robbie Ferguson, co-founder and president of Immutable, responded to the SEC’s decision, emphasizing the significance of regulatory clarity.

“We are pleased the SEC has concluded its inquiry. This marks a significant milestone for the crypto industry and gaming,”

Ferguson stated.

Despite dropping the investigation, the SEC did not provide further comments. A spokesperson told Cointelegraph that the agency does not confirm or deny the existence of investigations.

SEC Investigated Immutable’s IMX Token Sales

The SEC had been investigating the 2021 listing and private sales of IMX, the native token of Immutable X. The company had disclosed in November 2023 that it was being scrutinized over past transactions.

According to Immutable, the SEC focused on a 2021 blog post by the company. The post mentioned an IMX token pre-launch investment at $0.10 per token, issued at a $10 pre-100:1 split. The SEC questioned this statement, alleging that it implied there was no exchange of value.

After receiving the Wells notice, Immutable maintained that it had acted in compliance with regulations. The company held a 10-minute call with SEC representatives but did not disclose further details about the discussion.

SEC Closes Other Crypto Investigations

The SEC has recently dropped multiple crypto-related investigations, signaling a shift in enforcement strategy. Along with Immutable, the agency has closed cases involving:

• OpenSea, a major NFT marketplace

• Robinhood, a crypto trading platform

• Uniswap Labs, a decentralized exchange developer

• Gemini, a crypto exchange

The regulator has also dismissed lawsuits against Ripple Labs, Coinbase, and Kraken. These actions suggest a change in regulatory priorities, though the SEC has not officially commented on the reasoning behind these decisions.

Still Facing Class-Action Lawsuit Over IMX Token

Although the SEC ended its inquiry, Immutable still faces legal challenges. The Rosen Law Firm, based in Manhattan, is pursuing a securities class-action lawsuit related to the IMX token offering.

The firm cited the SEC Wells notice as a key argument in its case against Immutable. However, a spokesperson for the company said they are “not concerned about” the lawsuit.

In its March 25 statement, Immutable said that AAA gaming studios had previously cited legal risks as a major barrier to entering Web3 gaming. In addition, the company noted that regulatory clarity could lead to greater investment in blockchain-based gaming.

Notably, Immutable estimated that the in-game purchases market exceeds $100 billion, with potential for tokenized digital assets to play a larger role. The company suggested that a clearer regulatory environment could drive growth in Web3 gaming economies.