SEC Calls NFTs Securities In Lawsuit Against LA Entertainment Company

A media company, Impact Theory, based in Los Angeles, is facing securities violations charges from the U.S. Securities and Exchange Commission (SEC) for the sale of non-fungible tokens (NFTs).

The SEC has accused Impact Theory of conducting an unregistered offering of crypto asset securities by offering NFTs.

The media company allegedly raised around $30 million from several investors, including those in the United States, through this offering. The SEC has formally charged Impact Theory with the violation.

An entertainment company, referred to as the “next Disney,” allegedly offered “tremendous value” to investors through sales of investment contracts.

These sales, along with others, were considered securities sales by the SEC. Antonia Apps, Director of the SEC’s New York Regional Office, states that offerings of securities must be registered, unless a valid exemption is present.

Failure to do so deprives investors of protections provided by securities laws. Impact Theory has agreed to cease NFT sales, destroy Founder’s Keys, and pay over $6.1 million in fees and penalties.

The company neither admits nor denies the charges brought by the SEC.

It has been noted by Inmortal that Bitcoin’s recent price movements are similar to those observed in the latter months of 2019. Back then, BTC fell below its support level of $10,000 and hit a low of $6,000. Inmortal predicts that BTC will drop below $24,000 initially but will then rise to around $30,000.

However, the chart also shows that there will be a sharp decline to $21,000 following the rally. At present, Bitcoin is trading at $26,063.

With regard to Ethereum (ETH), the analyst believes that the leading smart contract platform will follow an ascending triangle pattern in the coming months before breaking out in early 2024.

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