The online eSports betting platform Unikrn has agreed to settle the SEC charges by paying over $6 million penalties regarding allegations of unregistered 2017 initial coin offering (ICO).
16 September 2020 | AtoZ Markets – Unikrn Inc. is a legitimate esports betting and entertainment media company based in Seattle, Washington. Established in 2014, the company owns a network of gaming communities that reach millions of gamers in more than 100 countries. Unikrn has its own unique cryptocurrency called Unikoingold(UKG). It also allows customers to purchase or use them for any betting options on the Unikrn site.
Unikrn Agrees to Pay Penalty for Distribution to Harmed Investors
The US Securities and Exchange Commission has announced that it has fined Unikrn $ 6.1 million for conducting an unregistered ICO in 2017. Unikrn said it has agreed to settle the SEC charges by paying the penalty and return funds to the affected investors through a fair fund. The SEC did not accuse Unikrn of fraud. However, the SEC said Unikrn failed to register the token as a security. The head of the SEC Enforcement Division’s Cyber Unit, Kristina Littman, stated:
“The securities registration and exemption framework is designed to ensure investor protection and access to material information. Failure to follow this framework harms investors and our markets. This resolution allows us to return all of Unikrn’s assets substantially to already-harmed investors. It also includes measures to prevent future sales to retail investors, including the tokens’ disabling.”
Regulators explained that the 2017 ICO violated securities laws. Meanwhile, Unikrn raised $ 31 million by conducting ICO between June and October 2017. The SEC claims that Unikrn provided UKG tokens through ICO to about 3,300 investors in the United States.
The statement said, “Unikrn also agreed to disable the UKG and publish notice of the order. It also requests the removal of UKG from all digital asset trading platforms”. Unikrn has promised investors to promote the secondary market, with an exit strategy to cash out the tokens it holds.
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