Musiccosmos

Unikrn, a Seattle-based e-sport betting startup that conducted an initial coin offering (ICO) last year, is now facing a class action suit accusing it of violating securities law in the U.S. Las Vegas resident and lead plaintiff John Hastings filed the case at a court in Washington State on Aug. 13, alleging that Unikrn and its founder Rahul Sood sold unregistered securities to the public via the ICO for its blockchain-based UnikoinGold Tokens (UKG). Hastings, a participant in the ICO, argued that the UKG tokens should be treated as securities since investors were led to expect that the tokens “would increase in value and become worth more than the virtual currencies invested.” He further claimed that Unikrn has “crafted a flimsy façade that UKG Tokens are not securities by claiming they are ‘utility tokens.'” Sood said in a news report from Geekwire on Thursday that Unikrn is “aware of the lawsuit,” but declined to give further comment on the case. As previously reported b...