Home ยป SEC Charges NFT Company with Unregistered Securities Offering

SEC Charges NFT Company with Unregistered Securities Offering

The U.S. Securities and Exchange Commission (SEC) has filed charges against Impact Theory LLC for selling NFTs in late 2021 without registering them as securities. Impact Theory sold NFTs called Founders’ Key, which tied the returns of the NFTs to the company’s success, making it resemble an investment contract. This resulted in the NFT sales being treated as unregistered securities offerings.

In response to the SEC’s order, the company has agreed to pay a fine of $6.1 million, refund all investors, and destroy any remaining Founders’ Key tokens. Additionally, they have also canceled any benefits associated with the purchase of Founders’ Key tokens.

Source: SEC.gov

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