The United States Securities and Exchange Commission (SEC) has brought its first enforcement action against a player in the non-fungible token (NFT) space. The regulator charged Impact Theory, a Los Angeles-based media and entertainment company, with conducting an unregistered securities offering.Impact Theory sold approximately $30 million of NFTs, claiming that purchasing a Founder’s Key equated to a form of investment in the company itself. The SEC found that Impact Theory frequently drew comparisons to their ambitions of mirroring the trajectory of Disney, Call of Duty, and YouTube and managed to raise $30 million from investors.The SEC has included disgorgement, prejudgment interest, and a civil penalty in the settlement. Additionally, a Fair Fund will be established to compensate the affected investors. The company is also required to destroy all Founder’s Keys in its possession, promote the order on its website and online platforms, and eliminate any future secondary market transaction royalties.Impact Theory’s CEO Tom Bilyeu has announced reaching a settlement with the SEC, thereby resolving the investigation. In the latest statement, the exec expressed disappointment over the SEC’s decision but added that the company remains optimistic about the future of this industry in the country.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	9
People	ZachXBT, Tom Bilyeu
Companies	Impact Theory, Disney, PrimeXBT, Binance, YouTube, United States Securities and Exchange Commission (SEC), Call of Duty
Currencies	ethereum, usd, nft, bitcoin
Securities