COINOTAG reported on November 3 that Marc Fagel, a former official with the US SEC, raised concerns regarding the agency’s recent Wells Notice issued to Immutable, a prominent Ethereum Web3 gaming company. Fagel emphasized that the SEC’s decision to issue such a notice without prior in-depth communication deviates from standard investigatory practices, which typically involve extensive dialogues. He noted that this approach can carry significant risks for both the regulator and the affected parties, as stakeholders usually anticipate a comprehensive review before a Wells Notice is delivered.
Immutable, which confirmed receipt of the Wells Notice from the SEC, may now face potential enforcement actions. As reported earlier by COINOTAG on November 1, the SEC’s communication also targeted CEO James Ferguson and the Digital Worlds Foundation related to the issuance of Immutable’s IMX token. The agency’s allegations include potential violations of securities regulations, underscoring the heightened scrutiny on Web3 projects and the imperative for regulatory clarity in this evolving landscape.