LA media company settles first SEC enforcement case over NFTs

SaltWire's Atlantic regional weather forecast for August 28, 2023 | SaltWireNEW YORK - A Los Angeles media company that billed itself as potentially"the next Disney" will pay $6.1 million to settle U.S. Securities and Exchange Commission charges it illegally raised nearly $30 million by conducting unregistered sales of non-fungible tokens.

Impact Theory allegedly raised $29.9 million by selling 13,921 Founder's Keys in late 2021, and received $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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