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Mark Cuban Backed Cryptocurrency Faces Class Action

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By George Khoury, Esq. on August 21, 2018 4:18 PM

Investing in cryptocurrency might be the riskiest and most shark-like investment from any of the sharks on the hit TV show Shark Tank. And while the sharks are usually risk averse when it comes to handing out money, Mark Cuban, who we'd be remiss to remind you is the owner of the NBA's Dallas Mavericks, expressed his support for one crypto-coin a few years ago.

Now, unfortunately for the owner of the Dallas Mavericks, that coin he invested in, Unikrn, which promised to be the best thing to ever happen to blockchain and online gambling, is facing a class action lawsuit over the spectacular plummet from nearly $2 to a nickel. Whoops.

Small Shark in a Digital Pond

The class action basically alleges that investors were duped into purchasing the Unikrn tokens because they were given the impression that the tokens would appreciate in value. The case claims that Unikrn sold unregistered securities. However, the class action plaintiffs will have to prove that the tokens they purchased were in fact securities rather than an advance sale of "utility tokens."

Mark Cuban was not alone in investing big money into Unikrn, and he even has a seat on the company's advisory board. When Cuban bought into Unikrn, his enthusiasm was palatable, he claimed:

"Hundreds of companies every year try to get me to invest, whether on Shark Tank or off camera. However, I only put my money and my name on the companies that I feel will be successful, truly advance an industry and have a leadership team that I respect. Unikrn fits all these requirements. ... The rapid growth of eSports has created an entire new category of competition and I am proud to partner with Rahul Sood and his team to help bring eSports to an even greater audience. As a sports fanatic and owner of the NBA's Dallas Mavericks, I'm excited to be involved with a new sport just as it's poised for huge growth."

You Can't Hide From the SEC

While the cryptocurrency boom may soon go bust, regardless of the financial winners and losers, the SEC is likely going to be kept busy for years to come after. This is due to the fact that the current market is filled with scammers, and it's basically being regulated via securities regulations that don't exactly fit the crypto-bill.

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