SEC has been pushed by the Impact Theory on $6,1 million for unregistered NFT sale – Bits Media

United States Securities and Exchange Commission (SEC) accused Impact Theory LLC from Los Angeles on the sale of non-replaceable tokens in 2021 year, calling them unregistered securities.

According to the press release SEC, from October to December 2021 of the year, company Impact Theory, entertainment, Offered NFT users from the Founders Keys collection, which were divided into categories called Legendary, Heroic и Relentless. The company attracted from several hundred American investors about $30 million.

The regulator claims, What Impact Theory called on potential investors to buy Founder’s Key Collective Tokens, promising them a profit. The creators of NFT stated, what, if impact theory succeeds, then the company will build "another Disney". The department emphasized, that NFT sold to investors were investment contracts. Respectively, Impact Theory has violated federal securities laws, selling these unregistered products.

“Any offers of securities must be registered. Otherwise, investors lose their protection and any guarantees, After all, they do not reveal the proper amount of information ", -said the head of the regional office of the SEC in New York Anthony APPS (Antonia Apps).

Impact Theory management did not recognize or deny the SEC accusations, agreeing to pay $6,1 Milln as a return of funds to investors, an administrative fine and interest on making a court decision. Besides, Impact Theory agreed to destroy the collection tokens Founders Keys, in her possession. The company is obliged to notify about this on its website and on social networks, and also exclude any royalties, which she could get from future transactions with these NFT in the secondary market.

Recall, that the regulator recently accused the former civil servant of fraud with the Blazar token, and also fined the investment company Titan Crypto Capital Management $1 Milln for concealing information from investors.