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.

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:

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.

Related Resources:

  • 3 Tips for Protecting Cryptocurrency Clients (FindLaw’s Technologist)
  • Payza Indicted in Cryptocurrency Money Laundering Scheme (FindLaw’s Technologist)
  • Cryptocurrency Founders Charged With Fraud (FindLaw’s Technologist)

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