The US Securities and Exchange Commission (SEC) has alleged that Impact Theory violated federal securities laws by selling investments in the form of unregistered non-fungible tokens (NFTs) under the name Founder’s Keys.
These tokens, sold by the Los Angeles-based entertainment and educational video content firm, reportedly raised $30 million.
According to the Commission’s statement, Impact Theory had encouraged potential investors to purchase Founder’s Keys in hopes that their investments would become profitable if the firm—intended to build the “next Disney”—was successful.
Antonia Apps, head of the New York regional office of the SEC, commented, “In the absence of a valid exemption, offers of securities in any form must be registered.
Without registration, investors of all types are deprived of the protection provided to them by proper disclosure of information and other guarantees long provided by law.”