Immutable Responds to the SEC’s Wells Notice Allegations

• Immutable responded to the SEC’s Wells Notice explaining its internal communications with the regulator. 
• The SEC has filed lawsuits against several cryptocurrency firms in the last few months.

In the last 24 hours, several interesting market activities occurred. The crash of the US stock market took the spotlight as the leading cryptocurrency Bitcoin also returned to the $69K level. Meanwhile, on the regulatory end, the SEC received a response from its recent Wells Notice receiver, Immutable. 

Crypto assets and gaming platform Immutable released an official statement responding to the SEC’s recent Wells Notice. The firm drew out a detailed history of the SEC’s ‘string of cases’ lost over the last few years. It referred to Ripple, Coinbase, and the secret investigation on ETH. Further, Immutable also referred to the lawsuit that Consensys filed against the regulator. 

Secondly, Immutable criticized the SEC’s approach towards cryptocurrency – regulation through enforcement rather than policy. They stated that Immutable reached out to the SEC for an open and clarifying conversation but only received a strict timeline. The SEC issued the Wells Notice very close to the US elections, not giving Immutable much time to clarify the allegations. 

Immutable stated in its official statement:

“We are confident in our position and welcome a robust conversation to clarify facts. Instead, we received an accelerated timeline before the U.S. election, hours after we reached out.”

The allegations include violations of securities laws and company misrepresentations dating back to 2018. Immutable also highlighted its intent to deal with the current Wells Notice and an impending lawsuit. 

How is Immutable Planning to Fight the SEC’s Allegations? 

The gaming platform discussed how the SEC was not open for a conversation and instead sent a Wells Notice in a matter of a few hours. The Wells Notice indicates an upcoming lawsuit. Additionally, Immutable also stated that the SEC’s allegations were under-researched and incorrect. 

Furthermore, the firm believes the issue could be resolved through an open conversation. However, if the SEC was willing to go to court, it would be willing to fight and win against the SEC, said the official statement. It also stated that the SEC cannot stop their growth and the crypto industry’s growth. 

Meanwhile, the SEC has continued its legal battle against the Ripple ecosystem with its last-minute appeal. Ripple has filed a cross-appeal in response to the SEC’s move. 

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