eSports betting operator Unikrn to pay $6.1M to settle SEC charges over its unregistered ICO

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SEC Order unregistered ICO

Unikrn, the Seattle-based online gambling, and eSports betting platform operator agreed to settle the charges filed against it by the Securities and Exchange Commission (SEC).

According to the SEC Order, Unikrn agreed to pay a penalty of $6.1 million to settle its complaint alleging that the company conducted an unregistered initial coin offering (ICO).

Allegations against Unikrn

Unikrn raised around $31 million from investors through its pre-same and ICO of UnikoinGold (UKG) token between June and October 2017. The company sold the tokens as investment contracts, thus considered securities. However, it did not register the offering or apply for an exemption.

The online gambling and eSports gaming platform operator told investors that it would the proceeds from its offering to develop additional apps for UKG tokens such as bingo, casino games, and eSports tournaments.

Additionally, Unikrn told investors that it will develop more features for its gaming platform including spectator betting and skills-based betting. It also promised investors to facilitate a secondary trading market and boost usage for the tokens so that its demand and value will increase.