Everything to Know About IMX SEC Charges: IMX Price Reacts to Dropped Investigation

IMX SEC charges dropped in 2025, boosting the Web3 gaming token. Bitcoin price steady as IMX rallies—latest crypto news unfolds

Immutable, the issuer of IMX—a token powering a layer-2 solution for Ethereum targeting NFT transactions—has received a major reprieve after the U.S. SEC withdrew charges it intended to file in 2024.

The strict SEC began investigating Immutable and its IMX token in late 2024 but chose to drop the charges yesterday. In response, IMX prices briefly rallied. However, the token has remained mostly stable today, presenting an opportunity for traders who think it is one of the best cryptos to buy in 2025.

DISCOVER: Top Solana Meme Coins to Buy in March 2025

IMX SEC Charges: Details

In November 2024, Immutable received a Wells Notice from the U.S. SEC.

The notice formally indicated that enforcement action was being considered and that the project was under investigation. However, it is not an official charge.

The SEC focused its scrutiny on IMX and how it was listed and issued, particularly during its private sale.

The agency argued that the nature of these transactions classified IMX as an unregistered security under the Howey Test, which is central to U.S. securities laws.

The SEC contended that IMX tokens were securities because, based on how they were sold, they represented investments. In their view, buyers also expected profits from the team’s efforts.

However, Immutable contested this claim, asserting that IMX was a utility token used to pay transaction fees. Holders, they added, could also participate in governance within its gaming ecosystem.

In light of this, Immutable argued that IMX could not be considered an investment vehicle.

Immutable also criticized the regulator, echoing what other firms like Ripple and Uniswap Labs have said: that the SEC was regulating through enforcement.

JUST IN: Crypto Mom, @HesterPeirce says the SEC “will NOT be taking an enforcement first approach.” pic.twitter.com/iMG1ezUEb8

— CryptosRus (@CryptosR_Us) February 5, 2025

The lack of clear regulatory guidance or prior engagement with the team before issuing the Wells Notice further solidified their position.

Like Coinbase and Ripple, the team vowed to fight any charges—after the SEC issued an enforcement action within hours—arguing that the regulator was rushing to pressure them.

EXPLORE: 10 Best AI Crypto Coins to Invest in 2025

SEC Drops Charges: Here’s Why

Four months later, Immutable confirmed that the SEC had officially closed its investigation and would not pursue any enforcement action against the Ethereum layer-2 platform.

Immutable called this “a win for all builders, creators, and gamers fighting for true digital ownership in gaming.” They added that they would continue building, a move that could make them one of the best cryptos to consider buying in 2025.

It remains unclear what precisely motivated the agency to drop the charges.

What’s evident is that since Gary Gensler stepped down in January 2025, the agency has adopted a more lenient stance on crypto regulations, dropping investigations into top crypto firms, including Robinhood, Coinbase, and Ripple.

The shift from enforcement and litigation to constructive regulation has been well-received. It aligns with the broader pro-crypto policies of the Donald Trump administration.

A prolonged legal battle with the SEC, amid strong political support for crypto, would likely lead to more opposition to the agency, as seen during the Gensler era.

There’s also a chance that the SEC didn’t find strong evidence to proceed with charges.

Their case largely rested on classifying IMX as a security in violation of securities law. Without clear evidence of fraud or investor harm, the decision to press on with the case might not have made sense in their view.

IMX Stable, But Immutable Faces a Challenge

While IMX briefly rose on this news, the token cooled off and remains within a bearish formation, trailing some of the hottest presales to buy right now.

The sell-off in late January 2025 saw IMX drop below its 2024 lows.

However, as the Bitcoin price also finds bullish momentum, IMX prices could extend gains and reverse losses.

If sellers return, any loss below $0.45 could see IMX fall to a new two-year low.

This possibility cannot be discounted. Although the SEC is dropping the case, Rosen Law Firm is exploring a class-action suit against Immutable.

Their complaint relates to the IMX token sale and centers on the possibility that the Ethereum layer-2 developer issued “materially misleading business information to the investing public.”

DISCOVER: 9 High-Risk High-Reward Cryptos for 2025

The post Everything to Know About IMX SEC Charges: IMX Price Reacts to Dropped Investigation appeared first on 99Bitcoins.