August 28, 2023

Impact Theory, LLC will pay more than $6.1 million in disgorgement, prejudgment interest, and a civil penalty, for offering and selling crypto asset securities to the public in an unregistered offering. Impact Theory sold three tiers of non-fungible tokens (NFTs)–“Legendary,” “Heroic,” and “Relentless,” which were ostensibly an investment into their business in which Impact was “trying to build the next Disney” which would provide “tremendous value” to investors. In addition to the $6.1 million, the order establishes a Fair Fund to return monies paid by injured investors, and Impact Theory will destroy all Founder’s Keys in its possession or control and will eliminate any royalty Impact might otherwise receive from secondary market transactions. SEC

Tagged in: Cryptocurrency, Financial and Investment Fraud, Regulatory Violations, Securities Fraud,