• 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

BNB Falls Below Key Trendline, Market Bias Turns Bearish

chest

BNB has dropped below a crucial support trendline and the 9EMA, indicating a shift in market sentiment to bearish.

user avatarEmily Carter

Market Analysts Set Downside Targets for BNB

chest

Market analysts have identified a potential drop zone for BNB between 860 and 850 if it remains under the trendline.

user avatarTomas Novak

Institutional Confidence in IBIT ETF Remains Strong Amid Market Volatility

chest

Institutional investors are increasing their holdings in BlackRock's IBIT ETF despite significant outflows, reflecting sustained trust in Bitcoin spot ETFs amid market volatility.

user avatarMaya Lundqvist

SpaceX Holds $105 Million in Bitcoin, Signaling Institutional Confidence

chest

SpaceX has recently acquired $105 million in Bitcoin, reflecting sustained institutional trust in the cryptocurrency.

user avatarKaterina Papadopoulou

Elon Musk Endorses Bitcoin as Energy-Based Currency

chest

Elon Musk declares Bitcoin a true energy-based currency, impacting cryptocurrency markets.

user avatarLeo van der Veen

Monero Experiences Normal Profit-Taking After Rally

chest

Monero's price drop today is seen as a normal profit-taking event following a significant rally that saw its price increase by over 23% last week.

user avatarLi Weicheng

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.