NASDAQ delisted Akazoo’s stock on June2, 2020. The company depleted more than $23 million of investors’ funds. The SEC obtained a court order freezing the company’s remaining $31.5 million on cash and other assets.
In April 2021, Akazoo agreed to a bifurcated judgment permanently prohibiting it from violating the anti-fraud and reporting provisions of the federal securities laws among other things.
The SEC said the $38.8 million settlement fully resolves the fraud charges against Akazoo. The amount includes a disgorgement of $35 million to defrauded investors and settlements in connection with several private class action lawsuits.
In a statement, SEC Forth Worth Regional Office Director David Peavler said, “One goal in filing this emergency action was to preserve assets for the benefit of injured investors, and this resolution accomplishes that goal.”
“The SEC is intently focused on SPAC merger transactions, and we will continue to hold wrongdoers in this space accountable,” added Peavler.