LA Media Company Faces SEC’s First Enforcement Action Over NFTs

Los Angeles media and entertainment company Impact Theory LLC will pay $6.1 million to settle Securities and Exchange Commission allegations that sales of its nonfungible tokens violated US securities laws.

The SEC said Impact Theory conducted an unregistered securities offering, marking the agency’s first enforcement action over NFTs. Impact Theory didn’t admit or deny the regulator’s allegations as part of the settlement.

“Absent a valid exemption, offerings of securities, in whatever form, must be registered,” Antonia Apps, director of the SEC’s New York office, said in a statement announcing the charges Monday.

Impact Theory sold almost $30 million worth of ...