Furthermore, the SEC found that the online gambling and eSports gaming platform operator required investors to sign an agreement that they were buying UKG tokens for their own use and not as an investment.
However, investors had reasonable expectations to obtain future profits based on Unikrn’s promotions of the offering. In fact, Unikrn engaged the services of a blockchain marketing firm to promote its unregistered ICO of UKG tokens. The marketing firm described the tokens as a “good long-term, hold.”
Unikrn violated the registration provisions of the Securities Act, according to the SEC.
Details of the settlement
According to the SEC, Unikrn agreed to settle without admitting or denying the allegations against it.
As part of the settlement, the online gambling and eSports gaming platform operator agreed to disable UKG within ten days of the date of the SEC Order.
Unikrn will pay a penalty of $6.1 million, which will be returned to affected investors. It will also request UKG’s removal from all digital asset trading platforms.
