The regulator said California-based media company Impact Theory made about $30 million from the sale of NTFs called Founder’s Keys. The digital assets were sold in three phases.
The SEC suggests that the NTFs in this case are in violation of the Securities Act because the digital assets were sold without the required registration.
During the course of the proceedings, the regulator and Impact Theory agreed to establish a fund to return cash to investors in NFT Founder’s Key. The fine for violating the law was $6.1 million. The media company will also agree to destroy all NFTs it owns and publish a social media post stating that it will not receive royalties from secondary market sales of NFTs.