The U.S. SEC accuses entertainment company Impact Theory of issuing unregistered securities in the form of NFTs

ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) has charged Los Angeles-based media and entertainment company Impact Theory, LLC with the unregistered issuance of crypto asset securities in the form of NFTs. Impact Theory raised approximately $30 million from hundreds of investors, including those from across the United States, through this issuance.

The order determined that the NFTs offered and sold to investors are investment contracts and therefore securities, concluding that Impact Theory violated federal securities laws by offering and selling these securities to the public in an unregistered issuance that does not fall under any registration exemptions. Impact Theory neither admits nor denies the findings of the SEC's investigation but agrees to pay over $6.1 million in penalties, pre-judgment interest, and civil fines.