SEC Charges Impact Theory for Unregistered Offering of NFT Securities

One sentence summary – The U.S. Securities and Exchange Commission (SEC) has charged Impact Theory, a media company, with conducting an unregistered offering of crypto asset securities in the form of NFTs, raising $30 million from investors, and as part of a settlement, Impact Theory has agreed to pay over $6.1 million, destroy the NFTs, and create a fund to reimburse investors.

At a glance

  • The SEC has filed charges against Impact Theory, a media and entertainment company based in Los Angeles.
  • Impact Theory conducted an unregistered offering of crypto asset securities in the form of NFTs, raising approximately $30 million.
  • Investors, including those in the United States, were encouraged to purchase the NFTs called “Founder’s Keys” as an investment opportunity.
  • Impact Theory violated the Securities Act of 1933 by selling these NFTs as unregistered securities.
  • As part of the settlement, Impact Theory will pay over $6.1 million, create a fair fund to reimburse investors, and destroy all the Founder’s Keys in their possession.

The details

The U.S. Securities and Exchange Commission (SEC) has recently filed charges against Impact Theory, a Los Angeles-based media and entertainment company.

The SEC alleges that Impact Theory conducted an unregistered offering of crypto asset securities in the form of non-fungible tokens (NFTs).

This offering reportedly raised approximately $30 million from investors.

These investors included those based in the United States.

Impact Theory introduced a series of NFTs called “Founder’s Keys”.

The company actively encouraged investors to purchase these NFTs.

They touted them as an investment opportunity with promising returns.

However, the SEC claims that Impact Theory violated the Securities Act of 1933.

This violation was due to the sale of these NFTs as unregistered securities.

In response to the SEC charges, Impact Theory has agreed to a cease-and-desist order.

The company has not offered a response to the allegations.

They have acknowledged the violation of the Securities Act of 1933.

As part of the settlement, Impact Theory has committed to paying over $6.1 million.

This sum includes returning the funds raised, prejudgment interest, and a civil penalty.

Furthermore, Impact Theory has agreed to create a fair fund.

This fund is aimed at reimbursing investors who purchased the NFTs.

In an effort to rectify the situation, the company will also destroy all the Founder’s Keys in their possession.

They will also eliminate any potential royalties from future sales of the NFTs.

To ensure transparency, Impact Theory will publish notice of the SEC order on its official websites and social media channels.

The intention is to inform users about the legal developments surrounding the case.

This case serves as a reminder of the importance of compliance for crypto companies.

These companies are operating in an environment of uncertain regulations.

Impact Theory’s acceptance of responsibility demonstrates their commitment to fostering a trustworthy industry environment.

Please note that this brief is based on the available facts and information provided.

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coingape.com
– The U.S. Securities and Exchange Commission (SEC) has filed charges against Impact Theory, a media and entertainment company based in Los Angeles.
The SEC accuses Impact Theory of conducting an unregistered offering of crypto asset securities in the form of non-fungible tokens (NFTs) and raising $30 million from investors, including those from the United States.
– Impact Theory introduced three tiers of NFTs called “Founder’s Keys” and encouraged investors to buy them as an investment into the company, promising lucrative returns.
The SEC claims that Impact Theory violated the Securities Act of 1933 by selling the NFTs as unregistered securities.
– Impact Theory agreed to a cease-and-desist order without providing a response to the SEC, acknowledging their violation of the Securities Act of 1933.
– Impact Theory will pay over $6.1 million, including returning the funds raised, prejudgment interest, and a civil penalty.
They will also create a fair fund to reimburse investors who purchased the NFTs.
– Impact Theory will destroy all the Founder’s Keys in their possession and remove any potential royalties from future sales of the NFTs.
The company will publish notice of the order on its official websites and social media channels to inform users about the legal developments.
This case highlights the importance of compliance for crypto companies in the face of uncertain regulations.
Impact Theory’s acceptance of responsibility demonstrates a commitment to creating a trustworthy industry environment.

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