SEC Fines Unikrn $6.1M Over Unregistered Initial Coin Offering

The U.S. Securities and Exchange Commission announced Tuesday that it has fined Seattle-based esports betting company Unikrn $6.1M USD for “conducting an unregistered initial coin offering (ICO) of digital asset securities.” The fine, which Unikrn has agreed to pay, is related to raising an estimated $31M for its UnikoinGold (UKG) token between June and September of 2019. The order found that Unikrn violated registration provisions of federal securities laws. 

“The order finds that Unikrn planned to use the offering proceeds to make more features available on the gaming platform and to develop additional applications for the UKG tokens,” the SEC wrote in its ruling. “Unikrn promised investors that it would facilitate a secondary trading market for the tokens and that its efforts to increase the usages for the UKG token would increase demand for and in turn, the value of the tokens. The order finds that Unikrn offered and sold UKG as investment contracts, which constituted securities, yet failed to register the offering or qualify for an exemption.” 

While agreeing to pay the fine, the company does not admit to or deny any wrongdoing. It also agreed to publish the finding on its website (which it has), disable its UKG digital currency, and seek removal of it from all trading platforms. The findings can be found on the SEC website.

Unikrn has a number of ties in the esports industry. It operates a betting platform and sponsors a number of esports organizations. Most recently Unikrn partnered with esports data firm GRID for an esports prize draw called Esports Millions.

Source: Read Full Article