• 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

Global Investors Adjust Portfolios as Japan's Fiscal Policies Shift

chest

Global investors are rebalancing portfolios as Japanese government bonds regain appeal following Japan's snap election, impacting global markets.

user avatarElias Mukuru

Elon Musk Unveils Plans for a Lunar City

chest

Elon Musk has announced his ambitious vision to build a self-growing city on the Moon with SpaceX.

user avatarDiego Alvarez

National Security Concerns Raised in WLFI Investigation

chest

The WLFI investigation led by Congressman Ro Khanna explores national security concerns linked to financial transactions and US controls on AI semiconductor exports.

user avatarSon Min-ho

WLFI Investigation Examines Stablecoin's Role in UAE Investment

chest

WLFI investigation examines stablecoin's role in UAE investment.

user avatarTando Nkube

XRP Ledger Achieves Major Milestone with Institutional Participation

chest

The XRP Ledger has successfully removed barriers for banks, enabling direct settlement and potentially facilitating billions in inflows.

user avatarKenji Takahashi

Upcoming XRP Community Day to Focus on Utility Expansion

chest

RippleXDev announces XRP Community Day on February 11 to discuss features enhancing XRP utility.

user avatarMaria Fernandez

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.