David Silver Quote:
Daniel Harrison and Monkey Capital are a damning indictment of what is wrong with the ICO market and the unregulated sales of securities
Monkey Capital, a Delaware-based company seeking to create a decentralized hedge fund, has been hit with a class action lawsuit alleging a fraudulent issuance of securities.
The claim, filed in the U.S. District Court in Florida, represents five plaintiffs who invested cryptocurrency now valued at $3.8 million into the project ahead of a proposed token sale last July that was to help build the Monkey Capital Market – an envisaged decentralized hedge fund and private crypto exchange.
The investors purchased cryptocurrency options called "coevals" that were to be later used to purchase tokens called Monkey Coins at a valuation premium in a forthcoming token sale.
However, after the sale was delayed, Monkey Capital's fundraising website disappeared altogether in early August, when the sale was scheduled to resume. It has yet to reappear.
The suit alleges that Daniel Harrison, founder of Monkey Capital and an heir to Harrison & Sons – a U.K.-based printing house – then captured the proceeds via a network of pass-through companies and exchanged them for crypto or fiat currency.