Recent posts have discussed proceedings brought by the SEC in connection with ICOs that violated the securities laws. But private plaintiffs can also bring suits alleging violations of securities laws based on a company’s failure to register a token as a security. That is the claim being made in Solis v. Latium Network, Inc. On December 10, 2018, the judge in that case decided that the allegations in the complaint were sufficient to survive a…
The U.S. SEC announced yesterday that it had stopped what sounds like the most brazen fake ICO yet. According to the complaint, Blockvest LLC not only falsely claimed that it had obtained SEC approval, it also used the SEC seal without permission (a violation of federal law) and promoted the ICO with a fake agency called the “Blockchain Exchange Commission” (using a graphic similar to the SEC’s seal and the same address as SEC headquarters).…
Unikrn is an esports gambling startup associated with that raised approximately $31 million through an initial coin offering (“ICO”) in October 2017. Mark Cuban was one of the notable investors in Unikrn. The company’s token, UnikoinGold, was marketed as a method of currency to be used on the Unikrn gambling platform, which allows users to bet on esports. At one point in early January UnikoinGold was worth as much as $2.47, though the tokens are…