Unikrn has finally settled with SEC for ICO foul play. The Esports Betting Operator finally agreed for a settlement with the US Securities and Exchange Commission for $6.1mn. The settlement came after SEC figured out that Unikrn carried unregistered Initial Coin Offering (ICO) of digital asset securities.
The SEC report says that Unikrn raised around $31mn from the ICO by offering Unikoin Gold (UKG) token from June to October 2017.
As per the SEC, Unikrn had a plan to use proceeds from the offerings to increase the number of features available on its gaming platform. The plan was to develop other applications as well.
Unikrn however promised the investors to facilitate a secondary trading market for UKG tokens. This would increase the demand and value of the tokens.
SEC said that the UKG was sold as investment contracts and does not qualify for the exemption.
Unikrn did not deny or agree to the charges but agreed for the settlement. The agreement would see a fair fund established by Unikrn that will be used to return the money of the investors.