All You Need to Understand Regarding IMX SEC Allegations: IMX Price Responds to Concluded Inquiry

IMX SEC allegations dismissed in 2025, enhancing the Web3 gaming coin. Bitcoin value remains stable as IMX surges—latest updates in the crypto sphere emerge

Immutable, the creator of IMX—a token that fuels a layer-2 framework on ETH focused on NFT dealings—has garnered significant relief following the U.S. SEC’s decision to withdraw charges planned for 2024.

The stringent SEC initiated an inquiry into Immutable and its IMX token in late 2024 but opted to cease the charges yesterday. Consequently, IMX prices saw a brief increase. However, the token has mostly stabilized today, offering prospects for traders who believe it could be among the top cryptos to invest in for 2025.

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IMX SEC Allegations: Key Points

In November 2024, Immutable received a Wells Notice from the U.S. SEC.

The notice formally suggested that enforcement measures were being contemplated and that the project faced scrutiny. Nonetheless, this did not amount to an official accusation.

The SEC directed its investigation towards IMX, particularly regarding its issuance and listing during the private sale phase.

The agency posited that the characteristics of these transactions classified IMX as an unregistered protection in accordance with the Howey Test, which is fundamental to U.S. securities legislation.

The SEC argued that IMX tokens were securities because, as sold, they represented investments. In their assessment, buyers also anticipated profits derived from the team’s endeavors.

However, Immutable disputed this assertion, claiming that IMX functioned as a utility crypto token for transaction fee payments. They emphasized that holders could engage in governance within its gaming framework.

In this context, Immutable asserted that IMX could not be deemed a vehicle for investment.

Immutable additionally criticized the regulator, mirroring sentiments expressed by other companies such as Ripple and Uniswap Labs: that the SEC was enforcing regulations through punitive measures.

BREAKING: Crypto Mom, @HesterPeirce states the SEC “will NOT prioritize enforcement.” pic.twitter.com/iMG1ezUEb8

— CryptosRus (@CryptosR_Us) February 5, 2025

The absence of explicit regulatory direction or prior dialogue with the team preceding the issuance of the Wells Notice further reinforced their stance.

Similar to Coinbase and Ripple, the team pledged to contest any allegations—after the SEC issued an enforcement action shortly afterward—asserting that the agency was hastily pressuring them.

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SEC Withdraws Charges: Reasons Behind It

Four months later, Immutable announced that the SEC had officially concluded its inquiry and would refrain from pursuing any enforcement actions against the ETH layer-2 platform.

Immutable described this as “a victory for all builders, creators, and gamers advocating for true digital ownership in gaming.” They expressed their intent to continue developing, a strategic move that might render them one of the top cryptos worth considering for purchase in 2025.

The exact reasons behind the agency’s decision to drop the charges remain ambiguous.

What is clear is that since Gary Gensler’s resignation in January 2025, the agency has embraced a more flexible approach towards crypto regulations, halting probes into prominent crypto firms like Robinhood, Coinbase, and Ripple.

The transition from enforcement and litigation towards constructive compliance has been positively received. It corresponds with the broader pro-crypto policies of the Donald Trump era.

An extended legal conflict with the SEC, amidst strong political backing for crypto, could likely spark increased opposition to the agency, reminiscent of the Gensler period.

Additionally, it is possible that the SEC did not uncover substantial evidence to advance charges.

Their case predominantly rested on labeling IMX as a safety in breach of securities laws. Absent clear proof of fraud or detriment to investors, pursuing the case may not have seemed prudent in their perspective.

IMX Steady, Yet Immutable Faces Obstacles

Although IMX experienced a brief rise following this update, the coin has since cooled and remains within a declining pattern, lagging behind some of the most trending presales available now.

The sell-off in late January 2025 caused IMX to dip below its 2024 lows.

Nevertheless, with Bitcoin price also gaining optimistic momentum, IMX values could continue to rise and recover from losses.

Should sellers re-emerge, a drop below $0.45 could cause IMX to reach a new two-year low.

This scenario cannot be overlooked. Even though the SEC is withdrawing the case, the Rosen Law Firm is investigating a class-action lawsuit against Immutable.

Their complaint pertains to the IMX token sale and focuses on the allegation that the ETH layer-2 developer provided “materially misleading business information to the investing public.”

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The article Everything to Know About IMX SEC Charges: IMX Price Reacts to Dropped Investigation first appeared on 99Bitcoins.