Categories: ICO

Mark Cuban-Backed Unikrn ICO Sued by Disgruntled Investor

Click here to view original web page at www.ccn.com
Advertisement

Unikrn, an esports gambling startup that raised approximately $31 million through an initial coin offering (ICO) in 2017, has become the latest ICO-funded project hit with a class-action lawsuit by a disgruntled investor.

The Seattle-based company, which launched in 2014 as the world’s only fully-licensed and regulated esports betting platform, has been sued by lead plaintiff Las Vegas resident John Hastings for allegedly skirting federal securities violations by offering UnikoinGold Tokens (UKG) to the general public, rather than just accredited investors.

According to documents filed in Unikrn’s native Washington State, Hastings claims that although Unikrn called UKG utility tokens, they functionally operated as security tokens, since most buyers acquired them in the expectation that they would go up in value. This, the complaint says, made UKG an illegal securities offering.

“Investors in the UnikoinGold ICO, including Lead Plaintiff and the Class, made their investment with a reasonable expectation of profits,” he argued in the suit. “Defendants have crafted a flimsy façade that UKG Tokens are not securities by claiming they are ‘utility tokens.”

The performance of this investment failed to live up to expectations, however, and UKG has plunged in value against both USD and BTC. At one point in early January, UKG was worth as much as $2.47, though the tokens are now trading at just five cents.

Source: CoinMarketCap

Unikrn is the latest in a growing line of ICO-funded projects who have been hit with class action lawsuits by investors seeking to recoup their losses by persuading a court to rule that the offerings were conducted illegally. This list includes Tezos, which raised a then-record $232 million in 2017 and now ranks as the 18th-most valuable cryptocurrency.

UKG’s ICO presale attracted a number of notable investors, including billionaire Dallas Mavericks owner Mark Cuban and crypto-billionaire Brock Pierce, as well as cryptocurrency hedge funds Pantera Capital and Blockchain Capital. Prior to holding an ICO, Unikrn received traditional venture funding from Ashton Kutcher, among others.

Unikrn CEO Rahul Sood told GeekWire that the company has retained Seattle law firm Perkins Cole and tends to “vigorously defend” its interests in court.

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.

Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Watford FC to brand Bitcoin logo on the jersey

The initiative is being carried out as a part of a brand partnership with sports betting site Sportsbet.io. Sportsbet.io's marketing… Read More

1 hour ago

Latest Bitcoin price and analysis (BTC to USD)

At the time of writing, Bitcoin (BTC) is trading at just above $10,300 after gaining about 1% since last week.BTC… Read More

1 hour ago

Johnstone: How To Defeat The Empire

Authored by Caitlin Johnstone via CaitlinJohnstone.com, One of the biggest and most consistent challenges of my young career so far… Read More

1 hour ago

Today’s Bitcoin Drop Driven by Massive Volume Influx

Bitcoin has been facing a bout of sideways trading for the past several days, but today’s drop to below $10,200… Read More

1 hour ago

L.A. to Choose Blockchain Pilot Project at CIS Conference

With a growing interest in blockchain solutions for government, the city of Los Angeles has partnered with organizers of a… Read More

1 hour ago

Bitcoin’s heading to a new all-time high along with the S&P 500, says Fundstrat’s Tom Lee

watch nowTalk about a bitcoin bull case.The digital currency is headed to new record highs, says Tom Lee, co-founder, managing… Read More

1 hour ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More