LA media company settles first SEC enforcement case over NFTs

FILE PHOTO: Signage is seen at the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew Kelly/File Photo

NEW YORK (Reuters) - 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.

Monday's settlement with Impact Theory LLC was the SEC's first enforcement action involving NFTs, digital assets that reflect ownership of files such as artwork, images and videos and are recorded on a blockchain.