{"id":85734,"date":"2023-08-29T00:08:55","date_gmt":"2023-08-29T04:08:55","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=85734"},"modified":"2023-08-29T00:49:36","modified_gmt":"2023-08-29T04:49:36","slug":"la-based-media-and-entertainment-co-impact-theory-charged-for-unregistered-offering-of-crypto-asset-securities","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/08\/2023\/la-based-media-and-entertainment-co-impact-theory-charged-for-unregistered-offering-of-crypto-asset-securities.html","title":{"rendered":"LA-Based Media and Entertainment Co. Impact Theory Charged for Unregistered Offering of Crypto Asset Securities."},"content":{"rendered":"\n<p>(HedgeCo.Net) The Securities and Exchange Commission has charged <strong>Impact Theory, LLC,<\/strong> a media and entertainment company headquartered in Los Angeles, with conducting an unregistered offering of <strong>crypto asset<\/strong> <strong>securities<\/strong> in the form of purported non-fungible tokens (NFTs). Impact Theory raised approximately <strong>$30 million <\/strong>from hundreds of investors, including investors across the United States, through the offering.<\/p>\n\n\n\n<p>According to the SEC\u2019s order, from October to December 2021, Impact Theory offered and sold three tiers of NFTs, known as Founder\u2019s Keys, which Impact Theory called \u201cLegendary,\u201d \u201cHeroic,\u201d and \u201cRelentless.\u201d The order finds that Impact Theory encouraged potential investors to view the purchase of a Founder\u2019s Key as an investment into the business, stating that investors would profit from their purchases if Impact Theory was successful in its efforts. Among other things, Impact Theory emphasized that it was \u201ctrying to build the next Disney,\u201d and, if successful, it would deliver \u201ctremendous value\u201d to Founder\u2019s Key purchasers. The order finds that the NFTs offered and sold to investors were investment contracts and therefore securities. Accordingly, Impact Theory violated the federal securities laws by offering and selling these crypto asset securities to the public in an unregistered offering that was not otherwise exempt from registration.<\/p>\n\n\n\n<p><strong><em>\u201cAbsent a valid exemption, offerings of securities, in whatever form, must be registered,\u201d said Antonia Apps, Director of the SEC\u2019s New York Regional Office. \u201cWithout registration, investors of all types are deprived of the protections afforded them by the robust disclosures and other safeguards long provided by our securities laws.\u201d<\/em><\/strong><\/p>\n\n\n\n<p>Without admitting or denying the SEC\u2019s findings, Impact Theory agreed to a cease-and-desist order finding that it violated registration provisions of the Securities Act of 1933 and ordering it to pay a combined total of more than $6.1 million in disgorgement, prejudgment interest, and a civil penalty. The order also establishes a Fair Fund to return monies that injured investors paid to purchase the NFTs. Impact Theory agreed to destroy all Founder\u2019s Keys in its possession or control, publish notice of the order on its websites and social media channels, and eliminate any royalty that Impact Theory might otherwise receive from future secondary market transactions involving the Founder\u2019s Keys.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Securities and Exchange Commission has charged Impact Theory, LLC, a media and entertainment company headquartered in Los Angeles, with conducting an unregistered offering of crypto asset securities in the form of purported non-fungible tokens (NFTs). Impact Theory raised [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-85734","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/85734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=85734"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/85734\/revisions"}],"predecessor-version":[{"id":85735,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/85734\/revisions\/85735"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=85734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=85734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=85734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}