Mark Cuban-backed $31 million ICO "Unikrn" agrees to US SEC fines

Published on by Cryptoslate | Published on

Unikrn, a Seattle-based e-sports platform, has agreed to pay a $6 million fine to settle a complaint by the US Securities and Exchange Commission that said it raised $31 million by selling unregistered securities, according to a release.

The firm previously boasted celebrity investors like Ashton Kutcher and Mark Cuban, and capitalized on 2017's ICO boom by offering UnikrnGold tokens in June that year.

It managed to raise over $31 million in a short span.

Unikrn positioned the tokens as an attractive proposition for investors and even stated they would become more valuable - and hence more profitable - for early buyers as it released crypto-based gambling platforms.

Yesterday, it came to an end with Unikrn agreeing to pay over $6 million to cover investor losses among other fines.

The SEC will operate a fund for token holders who would like a refund - to participate, please withdraw your UKG from Unikrn to a private wallet.

Despite the judgment industry observers say the fines levied on Unikrn has been unusually high, compared to what most other crypto firms have paid out relative to the amount they raised.

One, settled an SEC investigation in 2019, it paid just $24 million, a tiny.

Amount considering it raised nearly $4 billion in its ICO. An SEC spokesperson did not immediately respond to a question about why the Unikrn settlement was so high by comparison, the report stated.

SEC Commissioner Hester Peirce, also known as "Crypto Mom" for her progressive stance on regulations for the blockchain and cryptocurrency industry, argued that the $6.1 million settlement could force Unikrn to go out of business.