Unikrn, the esports gaming platform that has attracted celebrity investors including Mark Cuban and Ashton Kutcher, is in a spot of legal bother.
A potential class-action lawsuit has been initiated by an investor in Unikrn’s cryptocurrency Unikoin Gold (UKG).
The plaintiff, John Hastings, alleges that Unikrn and its founders Rahul Sood and Karl Flores broke US Securities law when they said UKG was a utility token as opposed to a security.
UKG raised 112,000 Ether in 2017, making it one of esports and gaming’s most successful token sales.
But Hastings, who invested 10 Ether in the sale last year, is less impressed.
“In reality, the UnikoinGold ICO was an offer and sale of securities. Indeed, it is evident that investors were purchasing UKG Tokens with the expectation that those tokens would increase in value and become worth more than the virtual currencies invested,” said the filing.
Unikrn will fight the allegations and has hired law firm Perkins Coie to “vigorously defend” against the claims.
Although Sood and company may be concerned at a recent report from the US Securities and Exchange Commission that said the tokens of DAO.casino were subject to security laws.
At time of writing, Unikoin Gold was trading at $0.050567.