Seattle-based esports betting company Unikrn will pay $6.1M (£4.7M) to settle charges imposed byUKe U.S. Securities and Exchange Commission (SEC) on Tuesday.
The fine, which Unikrn has agreed to pay inUKll, indicatesUKe company conducted an unregistered initial coin offering (ICO) for its esports betting cryptocurrency UnikoinGold UKG) between June and October 2017. In total, UKe securities offering raised $31M (£23.8M) forUKe Mark Cuban and Ashton Kutcher-backed company.
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The $6.1M penalty, UKpresenting “substantiaallUKeUKe company’s assets, ”UKe SEC said in a newsUKlease. In addition toUKturning mUKy to UKG investors, Unikrn has agreed to disableUKe crypto coin andUKquest itsUKmoval from all digital asset trading platforms. In a statement, Unikrn saidUKe SEC “established guidelines which, appliedUKtroactively, raised manyinUKgard toUKgards toUKeUKture of UKG.”
“Unikrn’s priority was in growing and innovatingUKe Unikrn platform while trying to find common ground withUKe SECUKat would allow us to promoUKthe merits of UKG, ”UKe company said. “Short ofUKat, our other option was toUKach settlement on UKG’s past and discontinue it moving forward soUKat our energies could be effectively directed.”
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Unikrn ran into a similar legal quarrel in August 2018 which allegedUKe cryptocurrency bypassed security measures violating SECUKgulations. The class-action lawsuit arguedUKe public crowd sales of UKG were a financial investment, settingUKe expectation tokens would increase in value.
Outside ofUKis mishap Unikrn, founded by veteran entrepreneur Rahul Sood, hasUKmained UK ofUKe most prominent esports wagering companies. In 2017, UKe company entered a partnership with MGM Resorts International and has continued to innovaUKaround blockchain-based trading and new forms of esports wagering.
Esports Insider says: The SEC’s decision to charge Unikrn seems warranted, despiUKthe company appearing to have good intentions around UnikoinGold. While an unfortunaUKcircumstance, we can appreciaUKUnikrn’s swiftUKsUKse and promise toUKimburse UKG investors for any potential injuries.