The US Securities and Exchange Commission has so many complaints about the Unikrn ICO that the eSports provider has to pay a heavy fine.
The US eSports provider Unikrn currently has a problem with the US Securities and Exchange Commission
Unikrn launched its ICO back in 2017. In a current press releasethe SEC accuses Unikrn of not having gone through the proper steps that are necessary for an initial coin offering. The Unikrn project called UnikoinGold (UKG) took shape in September 2017 in the form of an ICO. The ICObench websitestates as invested capital around 28.6 million US dollars. The SEC statement’s announcement lists a slightly higher amount for the June through October project, about $ 31 million.
According to the SEC, the UKG was only announced as an instrument with which one can place bets on certain competitions in the eSports area on the Bitcoin Trader app platform. In fact, the ICO was then designed in a different way. It didn’t just appear as a sports bet, but as a chance for investors to win. However, according to the SEC allegation, a special license was required, which the authority did not have. “The order of the SEC states that Unikrn has violated the registration provisions of the federal securities laws,” so the original sound of the statement.
Unikrn pays a fine and takes UKG from the trading venue
The SEC report also states that Unikrn was apparently planning to use the proceeds from the offer to make more functions available on its own gaming platform. In addition, they wanted to develop additional applications for the UKG tokens. Unikrn has promised investors that a secondary trading market would arise for the tokens. In addition, greater demand for the UKG token can be expected, as Unikorn wanted to increase its usage options. In this way, investors were implicitly promised an increase in value.
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The SEC thus ascertains that Unikrn has offered and sold UKG as investment contracts that represented securities. However, they failed to correctly register the offer or apply for an exemption.
“Unikrn agreed to pay the cost by paying a fine of $ 6.1 million. That is essentially all of the company’s assets. It will now be distributed to investors via a fair fund, ”said the SEC announcement. “Unikrn also agreed to deactivate the UKG, publish a notice of the order and request the removal of the UKG from all digital asset trading platforms”.