SEC Charges LA-Based Media & Entertainment Co. for Unregistered Offering of NFTs

The SEC charged Impact Theory, LLC, a Los Angeles-headquartered media and entertainment company, with conducting an unregistered offering of crypto asset securities in the form of purported NFTs. According to the SEC's order, Impact Theory sold three tiers of NFTs called Founder's Keys from October to December 2021 and encouraged buyers to see them as investments, saying it was "trying to build the next Disney." The company raised approximately $30 million from hundreds of investors. Without admitting or denying the findings, Impact Theory agreed to a cease-and-desist order and to pay more than $6.1 million in disgorgement, prejudgment interest, and a civil penalty.