Unikrn, the ICO from 2017, has run into action from the United States Securities and Exchange Commission.
The SEC has mentioned that the startup is guilty of running its ICO without going through the appropriate legal channels. The commission says Unikrn offered an unregistered investment opportunity.
The SEC officials mentioned the following:
“Unikrn agreed to settle the charges by paying a $6.1 million penalty, substantially all of the company’s assets, to be distributed to investors through a Fair Fund, and also agreed to disable the UKG, publish notice of the order, and request removal of UKG from all digital asset trading platforms.”
The Unikrn project, with its UnikoinGold (UKG) token, appeared in ICO lists in September 2017, and gathered approximately $28.6 million in invested capital.
The project positioned itself as a betting company for the esports world. While, the SEC reps mentioned that the project framed its sale in a way that made it appear as a profit opportunity for investors, thus putting it in a financial category that required licensing, which it did not possess.
The statement mentioned that “The SEC’s order finds that Unikrn violated the registration provisions of the federal securities laws”.