SEC Files Lawsuit Over NFT Sales

Media company, Impact Theory, is being sued by the SEC regarding their line-up of NFTs. The issue arose with Impact Theory encouraging these NFTs to be “investments in their business” as well as assuring returns on investment, which by definition classifies it as a Security and must be registered as such. Impact Theory is being fined approx. $6M, in addition to determining a proper method to refund existing investors as well as revoke their NFT offerings until they are compliant.

If interested in more detailed information, reference the SEC press release here: https://www.sec.gov/news/press-release/2023-163