SEC revealed the news on Tuesday arguing that in 2017, Unikrn conducted an unregistered and therefore unauthorised Initial Coin Offering (ICO) for the sale of UnikoinGold (UKG).
However, in doing so, the company, Unikrn Inc, breached existing U.S. securities law and that opened a procedure against it. The ICO resulted in $31m raised by Unikrn that year, but some investors felt betrayed after SEC brought in their complaint.
One Josh Hastings opened a proceeding against the company in 2018 arguing that Unirkn had breached securities law. SEC explained that Unikrn had used the ICO to boost demand and enhance the value of UKG, but failed to request permission for the ICO, thus breaching securities law.
As part of the settlement, Unikrn will have to pay a $6.1m penalty as well as establish a Fair Fund for injured investors. The regulator has also asked Unikrn to suspend UKG from its platform and stop the sale of any future UKG tokens to civil investors.
Unikrn, which recently landed a major partnership with Microgaming, is backed by a number of established individuals, including Ashton Kutcher who reportedly bought $10m worth of Unikrn. Despite this penalty, though, Unirkn remains a trusted authority in the esports betting world.
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