SEC’s Crypto Dragnet Widens to NFTs in Case With Media Firm (1)

Wall Street’s main regulator expanded its crackdown on crypto products Monday by accusing a Los Angeles-based media and entertainment company of offering nonfungible tokens that were really unregistered securities.

The US Securities and Exchange Commission alleged that Impact Theory LLC raised approximately $30 million from hundreds of investors through its NFT offerings. The SEC said the offerings should have been registered with the agency, and that Impact Theory had agreed to pay more than $6 million to settle the allegations.

The settlement marks the agency’s first enforcement action on NFTs, solidifying another front in its clampdown of crypto products that ...