• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

SEC penalizes Impact Theory for investor protection

user avatar

by Giorgi Kostiuk

a year ago


The U.S. Securities and Exchange Commission (SEC) recently took action against Impact Theory, a media and entertainment firm, following allegations of fraudulent activity in the cryptocurrency sector. This decision has brought relief to some in the crypto community who are hopeful for greater regulatory clarity.

SEC's Actions Against Impact Theory

The SEC imposed a hefty fine of over $6 million to be paid to investors misled during the promotional campaign for digital assets called KeyNFTs. Instead of opting for prolonged litigation, the SEC is focusing on mitigating fraudulent practices within the industry.

Regulatory Violations by Impact Theory

Impact Theory's actions were found to violate the Securities Act by selling unregistered securities without proper disclosures. The SEC found that approximately $29.9 million was raised from investors, including many based in the U.S., during a period of significant market turmoil.

Importance of SEC's Decision

The SEC's ruling highlights its commitment to investor protection through the following key measures: Impact Theory must compensate defrauded investors with $5.1 million. Additional amounts include prejudgment interest and a monetary penalty totaling $6.1 million. A Fair Fund has been established to ensure equitable distribution of collected fines to the affected investors. This decisive action by the SEC not only reinforces its role in safeguarding investors but also signals a more proactive approach to tackling fraud in the evolving cryptocurrency landscape.

The SEC's actions against Impact Theory signify its commitment to stricter regulation and investor protection in the rapidly developing crypto market.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Husky Inu AI Launches Live Products to Differentiate from Competitors

chest

Husky Inu AI has launched multiple live platforms, including SwapCrypto.com, CryptoNews.ai, HinuBucks.com, and CryptoGPT, setting it apart from typical early-stage meme projects.

user avatarKaterina Papadopoulou

Husky Inu AI Gains Attention as New Meme Coin

chest

Husky Inu AI is gaining attention as a new meme coin, being compared to successful past coins due to its early traction and live products.

user avatarMaya Lundqvist

Metaplanet Shares Experience Volatility Following Financial Report

chest

Metaplanet shares fell 7.03% on the Tokyo Stock Exchange following the announcement of significant financial losses, while shares on OTC Markets in the US closed the week up 1.56%.

user avatarLi Weicheng

US Stock Market Opens Higher with Optimistic Momentum

chest

The three major US stock indices opened decisively higher today, reflecting cautious optimism in the market.

user avatarLeo van der Veen

Nebius Capitalizes on AI Data Center Demand

chest

Nebius is experiencing strong growth due to high demand for AI data centers, driven by contracts with major clients.

user avatarLucas Weissmann

Challenges of Traditional IPOs Highlighted by Armstrong

chest

Brian Armstrong highlights the complexities and exclusivity of traditional IPOs, emphasizing high costs and limited access for retail investors.

user avatarAisha Farooq

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.