NEW YORK: A Los Angeles media company that billed itself as potentially"the next Disney" will pay US$6.1 million to settle US Securities and Exchange Commission charges it illegally raised nearly US$30 million by conducting unregistered sales of non-fungible tokens.
Impact Theory allegedly raised US$29.9 million by selling 13,921 Founder's Keys in late 2021, and received US$978,000 of royalties from secondary sales. The SEC said Impact Theory also compared its NFTs with"handing to Mark Zuckerberg in his dorm room," referring to the billionaire Facebook co-founder.
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