SEC Drops Case Against Immutable: A Win for Web3 Gaming

EC Drops Investigation Into Immutable’s IMX Token

The U.S. Securities and Exchange Commission (SEC) has, without pursuing enforcement action, formally concluded its investigation into the Ethereum-based gambling platform Immutable . The company concluded a five-month investigation into possible securities law violations involving its IMX token on Tuesday with the announcement of the judgment.

Source: X

Background of the Probe 

The investigation began in October 2024 when the SEC issued Immutable a Wells Notice. The regulator was examining whether IMX token sales in 2021, which raised at least $12.5 million, violated securities laws. It also questioned Immutable’s claims about the token’s backing, particularly a pre-launch investment from Huobi Ventures.

Immutable, the IMX Ecosystem Foundation, and CEO James Ferguson faced no penalties as a result of the investigation. The business presented the result as a significant win for digital ownership rights and Web3 gaming. Immutable had previously argued that IMX was not a security and denounced the SEC's strategy as regulatory overreach.

This ruling fits into a broader pattern in which the SEC has been renouncing its tough enforcement tactics in the cryptocurrency sector. The agency adopted a more lax regulatory approach and established a crypto task force under Commissioner Hester Peirce during the Trump administration. The dismissal of this case aligns with that shift.

The IMX token was also linked to a high-profile deal between Immutable and GameStop. In 2022, GameStop sold off its IMX holdings, generating about $47 million. The sale followed the collapse of a partnership in which GameStop has launched an NFT marketplace using Immutable X’s layer-2 scaling solution.

Source: X

Unanswered Questions About Token Sales 

It remains unclear what happened to the Ethereum (ETH) earned from IMX token transactions. Whether these funds were later dissolved or moved elsewhere is unknown. Similar concerns arose earlier this year when Reddit described its crypto holdings as “immaterial” in its SEC IPO filing.

It is reported earlier today that GameStop has updated its investment policy to include Bitcoin. This move signals the company’s continued interest in digital assets, despite stepping away from NFTs.

The SEC’s decision to close the case lifts a legal cloud over Immutable and its IMX token. It also reflects an evolving regulatory stance on crypto. As companies like GameStop shift focus to Bitcoin, the industry continues to adapt to changing market conditions and regulatory perspectives.