Former SEC official: There is a risk that the SEC issued a Wells notice to Immutable without a thorough investigation

ChainCatcher news, according to Coingape, former SEC official Marc Fagel expressed concerns regarding the agency's recent issuance of a Wells Notice to Ethereum Web3 gaming company Immutable. Immutable stated that this was issued without prior communication or with limited explanation, which does not align with the typically broader investigative procedures.

Fagel commented that it is uncommon for the SEC to issue such notices without conducting a thorough investigation first, indicating that this practice may be "risky." Typically, companies expect to undergo several months of interviews or communications before receiving a Wells Notice, and deviating from this standard practice could be seen as "risky."

Previous news, the Ethereum gaming company Immutable received a Wells Notice from the SEC, accused of violating securities laws, and may soon face enforcement action.