The U.S. SEC has charged Impact Theory, LLC, an LA-based media and entertainment company, for " conducting an unregistered offering of crypto asset securities in the form of purported non-fungible tokens (NFTs)." The company raised approximately $30 million from a diverse group of investors, including U.S. residents, between October and December 2021.

Indian Prime Minister Narendra Modi has used the platform of the annual G20 summit to advocate for international cooperation in formulating cryptocurrency regulations. As the current president of the G20, which consists of 19 countries and the European Union, India has taken the lead in pushing for a comprehensive global framework for governing digital assets.

Shibarium, Shiba Inu's Layer 2 blockchain, has resumed withdrawals on its bridge to Ethereum after a temporary suspension due to scalability issues. The mainnet had initially launched on August 16 but was paused due to an overwhelming number of transactions, locking millions in user funds and causing community concern.

Top stories in the Crypto Roundup today:

• SEC Brings First-Ever NFT-related Enforcement Action Against LA-Based Firm
• Indian Prime Minister Advocates for Global Crypto Framework at G20 Summit
• Shibarium Reopens Bridge Withdrawals, Easing Community Concerns

SEC Brings First-Ever NFT-related Enforcement Action Against LA-Based Firm

The U.S. SEC has charged Impact Theory, LLC, an LA-based media and entertainment company, for " conducting an unregistered offering of crypto asset securities in the form of purported non-fungible tokens (NFTs)." The company raised approximately $30 million from a diverse group of investors, including U.S. residents, between October and December 2021.

Impact Theory offered three types of NFTs, known as "Founder's Keys," categorized as "Legendary," "Heroic," and "Relentless." The SEC's investigation revealed that the company actively marketed these NFTs as investment opportunities in Impact Theory's business ventures. The company even claimed it was "trying to build the next Disney" and assured "tremendous value" for Founder's Keys holders if the company succeeded.

The SEC determined that these NFTs qualified as investment contracts and were, therefore, securities. As such, Impact Theory was in violation of federal securities laws for failing to register the offering or qualify for an exemption.

Impact Theory has consented to a cease-and-desist order without admitting or denying the SEC's findings. The company is also required to pay over $6.1 million in disgorgement, prejudgment interest, and civil penalties.

A Fair Fund will be established to compensate affected investors. Impact Theory will also destroy all Founder's Keys in its possession and publicize the SEC's order on its digital platforms. The company has also agreed to waive any future royalties from secondary market transactions involving these NFTs.

Indian Prime Minister Advocates for Global Crypto Framework at G20 Summit

Indian Prime Minister Narendra Modi has used the platform of the annual G20 summit to advocate for international cooperation in formulating cryptocurrency regulations. As the current president of the G20, which consists of 19 countries and the European Union, India has taken the lead in pushing for a comprehensive global framework for governing digital assets.

In an interview with Business Today, Modi emphasized the global nature of emerging technologies like blockchain and cryptocurrency. He argued that the regulatory framework for these technologies should not be confined to a single country or a group of nations. Drawing a parallel with the aviation industry, Modi stated that just as there are universal rules for air traffic control and air security, cryptocurrencies should also be subject to global regulations.

Modi elaborated that India's G20 presidency has broadened the discussion on cryptocurrency beyond just financial stability. It has also considered the macroeconomic implications, particularly for emerging markets and developing economies.

On August 1, India released a presidency note that included its recommendations for a global crypto framework. These suggestions were in line with guidelines from the Financial Stability Board, the Financial Action Task Force, and the International Monetary Fund, and also included additional points aimed at developing economies.

Shibarium Reopens Bridge Withdrawals, Easing Community Concerns

Shibarium, Shiba Inu's Layer 2 blockchain, has resumed withdrawals on its bridge to Ethereum after a temporary suspension due to scalability issues. The mainnet had initially launched on August 16 but was paused due to an overwhelming number of transactions, locking millions in user funds and causing community concern.

According to a blog post by Shytoshi Kusama, the pseudonymous lead developer of the Shiba Inu project, users can now withdraw various assets, including ETH, SHIB, LEASH, and wETH, within 45 minutes to 4 hours. Withdrawals of the BONE token may take up to seven days, as per the network's design. The reopening comes as a relief to the Shibarium community, which had been unable to access their assets for several days.

The pause had been attributed to a surge in transactions that exceeded the network's capacity, causing server failures. To prevent future issues, Shibarium has implemented a new monitoring system and added extra fail-safes. These measures aim to ensure the network can handle large traffic volumes without another stoppage, bolstering its credibility.

The Shibarium network had shown promise during its testing phase, attracting millions of wallets and facilitating 22 million transactions over four months. However, enthusiasm waned when transactions halted for nearly 11 hours shortly after its public launch, causing SHIB token prices to drop by 10%. The team has clarified that the issue was not with the bridge but rather an unexpected surge in user transactions that overloaded the servers.

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