Wednesday, August 30, 2023

SEC Charges Los Angeles Company Over NFTs

The Securities and Exchange Commission says it has https://www.sec.gov/news/press-release/2023-163#:~:text=The%20Securities%20and%20Exchange%20Commission,%2Dfungible%20tokens%20(NFTs).">charged Los Angeles media and entertainment company Impact Theory for its unregistered offering of non-fungible tokens (NFTs). According to the SEC, Impact Theory had raised approximately $30M from hundreds of investors in its NFT offering, which it says violated federal securities laws "by offering and selling these crypto asset securities to the public in an unregistered offering that was not otherwise exempt from registration." Impact Theory has agreed to a cease-and-desist order, and will pay more than $6.1 million in disgorgement, prejudgment interest, and a civil penalty, and will create a "Fair Fund" to return money to those NFT investors.