Nothing goes for Cuban – When he wasn’t busy blackening his karma by insulting innocent Bitcoin , Mark Cuban was trying to develop his own crypto project, Unikrn. Problem: the US SEC did not appreciate the course of this ICO at all. Result: a fine fine of $ 6 million.
Mark Cuban’s invention turns against him
This 15 September, the Securities and Exchange Commission (SEC) issued a press release regarding the Initial Offering Coin (ICO) project Unikrn , backed by Mark Cuban .
Between June and October 2017, a fundraising in the form of a token issuance took place to finance the company Unikrn , a gambling and betting platform on video game eSports.
The UnikoinGold (UKG) issued were supposed to improve and expand the functionality of the platform, but another promise did not please the Bitcoin Profit app at all. Indeed, the project leaders announced to potential investors that they would facilitate the creation of a secondary market for token resale .
According to the SEC, these efforts to increase the use of UKG tokens „would increase the demand and, therefore, the value of said tokens . “ And paf! Here we are with securities ( securities ).
Undeclared issuance of securities : fine of $ 6.1 million
The American regulatory authority did not need to accuse the instigators of Unikrn of having carried out an illegal issue of securities , since it was not declared to its services.
“The securities registration and exemption framework is designed to ensure investor protection (…). Failure to adhere to this framework harms investors and our markets. » , Kristina Littman, Head of the Cyber Unit of the SEC
Without admitting or denying the SEC findings, Unikrn agreed to pay a fine of $ 6.1 million , or one-fifth of the $ 31 million raised by the ICO at the time. But obviously, there was just a little more than the sum of the fine left in the project, because the commission explains that it took into account:
“(…) The financial situation of Unikrn and the fact that the penalty represents almost all of Unikrn’s assets (…). „
But Unikrn made other concessions , according to the SEC. The project would thus have agreed to „deactivate UKG tokens“ and to request the withdrawal of the UKG from all cryptocurrency exchange platforms.
The Washington State Department of Financial Institutions has also reportedly announced an out-of- court settlement with Unikrn on similar charges of violating the state fundraising registration provisions.
We understand a little better why Mark Cuban is in such a bad mood against Bitcoin. Indeed, without the king of cryptos, Ethereum might never have seen the light of day, and neither would ICOs. This would have represented a hell of a saving of time and money for the billionaire.