Close Menu
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain
  • NFT
  • Metaverse
  • Analysis
  • Learn
  • Blog
  • Contact
    • Tech7685@gmail.com
What's Hot

Metaplanet now contains more bitcoin than El Salvador, focuses on 10k BTC by 2025

2025-05-13

Cardano (ADA) Dips: Temporary correction or start of deeper movement?

2025-05-13

Bitcoin near ATH, but still no extreme greed: green sign for Bull Run?

2025-05-13
Facebook X (Twitter) Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
Facebook X (Twitter) Instagram
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain

    Abu Dhabi launches a large project with Agile Dynamics for quantum -safe blockchain

    2025-05-13

    Zimbabwe is turning into blockchain to breathe new life into the trust of the carbon credit of carbon credit

    2025-05-12

    Atlaspad and Arichain unite to stimulate user-friendly and scalable web3 acceptance

    2025-05-12

    Why Wall Street Crypto will not embrace without privacy of zero knowledge

    2025-05-12

    R2 Testnet affects 10 million transactions with 200K+ users in weeks

    2025-05-12
  • NFT

    Trump’s Crypto -Dinner cost VIP -Aurter $ 4.8 million

    2025-05-12

    New details about Trump’s Memecoin leaks from the official website – this is what they intend

    2025-05-12

    NFT -turns 10.6% to $ 115 million, Doodles Rally 500%

    2025-05-11

    Drink-to-earn? A new sparkling water comes with an NFT and points

    2025-05-08

    Cobie says we will return if someone buys this $ 20 million NFT

    2025-05-08
  • Metaverse

    Shib: The Metaverse – Part of the expanding Shiba Inu ecosystem

    2025-01-03

    Experience to Earn: Everdome’s Metaverse Frontier

    2024-12-30

    Beyond Bots: Meta Motivo and the Dawn of Human Digital Life

    2024-12-13

    Exploring NetVRk: What’s Behind This AI-Powered Virtual Universe?

    2024-10-28

    Council of Europe emphasizes the impact of Metaverse on privacy and democracy

    2024-09-05
  • Analysis

    Cardano (ADA) Dips: Temporary correction or start of deeper movement?

    2025-05-13

    The market capitalization of PI Network jumps $ 7 billion like token skyrockets 110% in a week in the middle of market bending

    2025-05-12

    Coinbase head of the institutional strategy says that scarcity stimulates the overwhelming wave of demand from major players

    2025-05-12

    Can the resistance crush and re -design the rally?

    2025-05-12

    XRP performs better than the crypto market with 10% jump if open interest rises beyond $ 5 billion

    2025-05-12
  • Learn

    What Is Proof-of-Work (PoW)?

    2025-05-12

    What Is Proof-of-Authority (PoA)?

    2025-05-10

    What Is Proof-of-Stake (PoS)? A Beginner’s Guide

    2025-05-09

    What Is a Layer-1 (L1) Blockchain?

    2025-05-03

    What is a Layer-2 (L2) Blockchain Network Solution?

    2025-05-02
  • Blog
  • Contact
    • Tech7685@gmail.com
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
Home»Altcoins»SEC fines company $6m for selling NFTs as “investment contracts”
Altcoins

SEC fines company $6m for selling NFTs as “investment contracts”

2023-08-29No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email


  • Impact Theory has been directed to pay over $6.1 million in disgorgement, prejudgment interest, and a civil penalty.
  • Two SEC commissioners have expressed their dissent regarding this decision.

The United States Securities and Exchange Commission [SEC] has taken significant action against a media and entertainment company, Impact Theory, for engaging in unregistered securities sales involving Non-fungible Tokens [NFTs] during October and December 2021.

Impact Theory, situated in Los Angeles, specializes in producing entertainment and educational content, including podcasts.

The SEC’s investigation reveals that the company managed to raise approximately $30 million through the sale of NFTs known as Founder’s Keys, offered across three tiers.

The SEC’s stance is rooted in Impact Theory’s apparent encouragement of investors to consider their purchase of a Founder’s Key as a direct investment into the company. It asserted that it was striving to become the “next Disney,” and that this achievement would yield substantial value to those purchasing Founder’s Keys.

After examining the situation, the SEC concluded that these NFTs qualified as investment contracts and thus should be treated as securities. Consequently, the company’s actions violated the Securities Act of 1933 due to the absence of proper registration.

To address this, the SEC issued a cease-and-desist order, to which Impact Theory consented.

Case sets precedent for regulatory oversight on NFTs

Impact Theory has been directed to pay over $6.1 million in disgorgement, prejudgment interest, and a civil penalty. Despite agreeing to this settlement, the company neither admitted to nor denied the agency’s findings.

Moreover, as part of the resolution, a fund will be established to reimburse investors who purchased Founder’s Key NFTs. To ensure compliance, Impact Theory will destroy all the Founder’s Keys in its possession, publish the order’s notice on its websites and social media platforms, and forgo any royalties from future secondary market sales of the NFTs.

See also  Was Jed McCaleb's exit from Ripple a 'Breakup' or a brilliant strategy? Discover it!

This enforcement action by the SEC marks a significant milestone, as it is the first instance where the agency has intervened in matters relating to NFTs. However, two SEC commissioners, Hester Peirce and Mark Uyeda, expressed their dissent regarding this decision. They argued that the NFTs in question didn’t resemble shares of a company and didn’t offer dividends to purchasers.

Despite acknowledging concerns about the hype driving individuals to spend substantial sums on NFTs without a clear understanding of their utilization or potential benefits, they asserted that this concern alone isn’t sufficient to bring the case under the SEC’s jurisdiction.

The SEC’s move highlights its increasing focus on regulating the NFT space, especially when it comes to issues of potential misrepresentation and investor protection.

Moreover, the commissioners’ perspective points toward a need for a more nuanced approach in assessing whether a particular NFT qualifies as an investment contract or not.

Source link

Company Contracts Fines Investment NFTs SEC Selling
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Bitcoin near ATH, but still no extreme greed: green sign for Bull Run?

2025-05-13

ETH up to $ 10k? – Analysts say that the graph and rivals point to ‘yes’

2025-05-12

Litecoin price analysis and forecast in the short term

2025-05-12

Government control could cause the rise of ‘Dark Stablecoins’ – how?

2025-05-12
Add A Comment

Comments are closed.

Top Posts

Mint Square NFT Marketplace will stop trading services by the end of June

2023-06-07

Over $790 million in token unlocks planned for May

2023-05-02

Arthur Hayes Joins Covalent to Develop Ethereum Wayback Machine for Data Preservation!

2024-06-12
Editors Picks

Geoffrey Weli-Wosu: Blockchain drives Nigeria’s digitalization

2024-10-10

What Is MetaMask Wallet, and Is It Legit?

2024-02-29

Worldcoin feels the heat as OpenAI forces Altman

2023-11-18

Aave Outpaces BTC But Hits Resistance: Is There a Turnaround on the Horizon?

2024-09-22
About
About

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, Defi, NFT, Metaverse and more.

We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

Metaplanet now contains more bitcoin than El Salvador, focuses on 10k BTC by 2025

Cardano (ADA) Dips: Temporary correction or start of deeper movement?

Bitcoin near ATH, but still no extreme greed: green sign for Bull Run?

Get Informed

Subscribe to Updates

Get the latest news and Update from Free.cc about Crypto, Metaverse, NFT and more.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
© 2025 Free.cc - All rights reserved. Contact: info@free.cc

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$102,798.23-1.43%
  • ethereumEthereum(ETH)$2,468.40-2.84%
  • tetherTether USDt(USDT)$1.000.02%
  • rippleXRP(XRP)$2.504.20%
  • binancecoinBNB(BNB)$650.36-1.49%
  • solanaSolana(SOL)$171.72-1.85%
  • usd-coinUSDC(USDC)$1.000.01%
  • dogecoinDogecoin(DOGE)$0.224874-7.18%
  • cardanoCardano(ADA)$0.79-3.36%
  • tronTRON(TRX)$0.262181-1.53%
  • suiSui(SUI)$3.96-4.68%
  • chainlinkChainlink(LINK)$16.46-5.28%
  • avalanche-2Avalanche(AVAX)$24.45-5.16%
  • stellarStellar(XLM)$0.305746-1.82%
  • shiba-inuShiba Inu(SHIB)$0.000015-7.17%
  • hedera-hashgraphHedera(HBAR)$0.207607-2.58%
  • hyperliquidHyperliquid(HYPE)$24.67-0.71%
  • the-open-networkToncoin(TON)$3.29-5.09%
  • piPi(PI)$1.13-27.87%
  • unus-sed-leoUNUS SED LEO(LEO)$8.592.76%
  • bitcoin-cashBitcoin Cash(BCH)$398.98-3.13%
  • polkadotPolkadot(DOT)$4.99-4.67%
  • litecoinLitecoin(LTC)$102.560.45%
  • moneroMonero(XMR)$340.92-1.05%
  • pepePepe(PEPE)$0.000014-7.15%
  • bitget-tokenBitget Token(BGB)$4.71-3.56%
  • daiDai(DAI)$1.000.01%
  • ethena-usdeEthena USDe(USDE)$1.000.06%
  • uniswapUniswap(UNI)$6.66-6.11%
  • bittensorBittensor(TAO)$458.37-2.21%
  • nearNEAR Protocol(NEAR)$3.06-4.26%
  • aptosAptos(APT)$5.69-5.37%
  • aaveAave(AAVE)$215.82-2.94%
  • okbOKB(OKB)$53.89-2.71%
  • ondo-financeOndo(ONDO)$1.01-6.43%
  • kaspaKaspa(KAS)$0.120107-5.35%
  • internet-computerInternet Computer(ICP)$5.58-5.38%
  • ethereum-classicEthereum Classic(ETC)$19.39-4.44%
  • gatechain-tokenGateToken(GT)$21.990.16%
  • mantleMantle(MNT)$0.79-3.03%
  • crypto-com-chainCronos(CRO)$0.099307-1.90%
  • render-tokenRender(RENDER)$5.04-5.28%
  • vechainVeChain(VET)$0.030055-8.16%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.247962-5.96%
  • official-trumpOFFICIAL TRUMP(TRUMP)$12.77-9.08%
  • ethenaEthena(ENA)$0.379674-9.77%
  • usd1World Liberty Financial USD(USD1)$1.000.15%
  • filecoinFilecoin(FIL)$3.02-6.03%
  • algorandAlgorand(ALGO)$0.233794-4.32%
  • arbitrumArbitrum(ARB)$0.421463-8.60%
  • bitcoinBitcoin(BTC)$102,798.23-1.43%
  • ethereumEthereum(ETH)$2,468.40-2.84%
  • tetherTether USDt(USDT)$1.000.02%
  • rippleXRP(XRP)$2.504.20%
  • binancecoinBNB(BNB)$650.36-1.49%
  • solanaSolana(SOL)$171.72-1.85%
  • usd-coinUSDC(USDC)$1.000.01%
  • dogecoinDogecoin(DOGE)$0.224874-7.18%
  • cardanoCardano(ADA)$0.79-3.36%
  • tronTRON(TRX)$0.262181-1.53%
  • suiSui(SUI)$3.96-4.68%
  • chainlinkChainlink(LINK)$16.46-5.28%
  • avalanche-2Avalanche(AVAX)$24.45-5.16%
  • stellarStellar(XLM)$0.305746-1.82%
  • shiba-inuShiba Inu(SHIB)$0.000015-7.17%
  • hedera-hashgraphHedera(HBAR)$0.207607-2.58%
  • hyperliquidHyperliquid(HYPE)$24.67-0.71%
  • the-open-networkToncoin(TON)$3.29-5.09%
  • piPi(PI)$1.13-27.87%
  • unus-sed-leoUNUS SED LEO(LEO)$8.592.76%
  • bitcoin-cashBitcoin Cash(BCH)$398.98-3.13%
  • polkadotPolkadot(DOT)$4.99-4.67%
  • litecoinLitecoin(LTC)$102.560.45%
  • moneroMonero(XMR)$340.92-1.05%
  • pepePepe(PEPE)$0.000014-7.15%
  • bitget-tokenBitget Token(BGB)$4.71-3.56%
  • daiDai(DAI)$1.000.01%
  • ethena-usdeEthena USDe(USDE)$1.000.06%
  • uniswapUniswap(UNI)$6.66-6.11%
  • bittensorBittensor(TAO)$458.37-2.21%
  • nearNEAR Protocol(NEAR)$3.06-4.26%
  • aptosAptos(APT)$5.69-5.37%
  • aaveAave(AAVE)$215.82-2.94%
  • okbOKB(OKB)$53.89-2.71%
  • ondo-financeOndo(ONDO)$1.01-6.43%
  • kaspaKaspa(KAS)$0.120107-5.35%
  • internet-computerInternet Computer(ICP)$5.58-5.38%
  • ethereum-classicEthereum Classic(ETC)$19.39-4.44%
  • gatechain-tokenGateToken(GT)$21.990.16%
  • mantleMantle(MNT)$0.79-3.03%
  • crypto-com-chainCronos(CRO)$0.099307-1.90%
  • render-tokenRender(RENDER)$5.04-5.28%
  • vechainVeChain(VET)$0.030055-8.16%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.247962-5.96%
  • official-trumpOFFICIAL TRUMP(TRUMP)$12.77-9.08%
  • ethenaEthena(ENA)$0.379674-9.77%
  • usd1World Liberty Financial USD(USD1)$1.000.15%
  • filecoinFilecoin(FIL)$3.02-6.03%
  • algorandAlgorand(ALGO)$0.233794-4.32%
  • arbitrumArbitrum(ARB)$0.421463-8.60%