Founder of Coevals ICO Hit with Default Judgment over Fake 'Crypto Options’

Operators of the scheduled-but-canceled Monkey Capital ICO have reportedly been hit with a $1.17 million judgment over alleged violations of Florida state and federal securities laws.

According to court papers, a group of investors alleges that Monkey Capital LLC, a Delaware company, and Monkey Capital Inc, a Singapore-based company, promoted an ICO and engaged in an unregistered sale of securities. Daniel Harrison, who is the son of a senior London financier, is accused of being the founder of the fraudulent scheme which is alleged to have lured investors from the U.S. to fund the creation of a new cryptocurrency.

The claims have been made in a civil class action filed in a Florida court.

Monkey Capital was supposedly creating a platform on which cryptocurrency could be exchanged for other digital coins or fiat currency, as well as a decentralized hedge fund to invest in Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-related takeovers and speculating on Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.

For this purpose, the company launched cryptocurrency options called Coevals that they would later be able to exchange for Monkey Coins. Although the company extensively hyped the ICO, and investors bought the Coevals, no ICO took place, and thus Monkey coins had almost no value.

Furthermore, the plaintiff claims that the ICO website disappeared and the investments made in Coevals went only into Harrison’s pocket.

US District Judge Donald M. Middlebrooks said that cryptocurrencies are securities and that the sale of Coevals was an unregistered offer and sale of securities and fraud, among other things, in violation of the Securities Act of 1933 and Florida state laws.