Unikrn, a Seattle-based e-sport betting startup that conducted an initial coin offering (ICO) last year, is now facing a class action suit that accuses it of violating securities law in the U.S. John Hastings, a Las Vegas resident and the lead plaintiff, filed the case with a court in the Washington State on Aug. 13, and alleged Unikrn and its founder Rahul Sood sold unregistered securities to the public via the ICO for its blockchain-based UnikoinGold Tokens (UKG). Hastings, himself a participant in the ICO, argued that the UKG token should be treated as a security since investors were made 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
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