2020-211 The Securities and Exchange Commission today announced charges against Unikrn Inc., an hustler of an on-line eSports gaming and gambling platform headquartered in Seattle, Washington, for conducting an unregistered initial coin offering ( ICO ) of digital asset securities. Unikrn agreed to settle the charges by paying a $ 6.1 million penalty, well all of the company ‘s assets, to be distributed to investors through a Fair Fund .
According to the SEC ‘s order, between June and October 2017, Unikrn raised approximately $ 31 million through its oblation of the UnikoinGold ( UKG ) token. The order finds that Unikrn planned to use the offering proceeds to make more features available on the bet on platform and to develop extra applications for the UKG tokens. Unikrn promised investors that it would facilitate a secondary trade market for the tokens and that its efforts to increase the usages for the UKG nominal would increase demand for and in twist, the respect of, the tokens. The regulate finds that Unikrn offered and sold UKG as investment contracts, which constituted securities, so far failed to register the put up or qualify for an exemption .
“ The securities registration and exemption model is designed to ensure investor protective covering and entree to material information, while besides facilitating capital formation. failure to follow this model harms investors and our markets, ” said Kristina Littman, Chief of the SEC Enforcement Division ‘s Cyber Unit. “ This resolution allows us to return substantially all of Unikrn ‘s assets to already-harmed investors and includes measures to prevent future sales to retail investors, including the crippling of the tokens. ”
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Reading: https://leowiki.com | Unregistered ICO Issuer Agrees to Disable Tokens and Pay Penalty for Distribution to Harmed Investors
The SEC ’ s ordain finds that Unikrn violated the registration provisions of the federal securities laws. Without admitting or denying the SEC ‘s findings, Unikrn agreed to pay a penalty of $ 6.1 million. The regulate establishes a Fair Fund to return this money to hurt investors. Unikrn besides agreed to disable the UKG, print notice of the order, and request removal of UKG from all digital asset trade platforms. According to the holy order, the Commission considered these undertakings, equally well as Unikrn ‘s fiscal condition and the fact that the penalty represents well all of Unikrn ‘s assets, in accepting Unikrn ‘s extend of village .
In a relate proceed, the Washington State Department of Financial Institution announced a liquidation with Unikrn for violations of state registration provisions in connection with Unikrn ‘s offer .
The SEC ‘s probe was conducted by Edward Reilly and Marc E. Johnson and was supervised by Amy Friedman, Carolyn Welshhans, and Ms. Littman, with the aid of trial rede James Carlson, supervised by Stephan Schlegelmilch. The SEC appreciates the aid of the Washington State Department of Financial Institutions .
Category : Economy
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