Cryptocurrency investor law firm Silver Miller has filed a class action lawsuit against Monkey Capital, a Delaware-based company seeking to create a decentralized hedge fund. The lawsuit, filed in the US District Court in Florida, alleges that Monkey Capital fraudulently promoted an initial coin offering (ICO) that violated numerous state and federal securities laws. The lawsuit represents five plaintiffs who invested cryptocurrency now valued at $3.8 million into the project.
Back in July, Monkey Capital launched a pre-ICO with Coevals (COE), a hybrid derivative token, that were to be later used to purchase Monkey Coins, the core asset of the project, at a valuation premium in a forthcoming ICO. The lawsuit alleges that as quickly as it had gathered millions of dollars in Coeval from solicited pre-ICO investors, Monkey Capital aborted its ICO just days before it was scheduled to commence, deactivated its website, liquidated the investors’ funds, and devalued the market of the Coeval cryptocurrency options that Monkey Capital had created and issued to its investors in exchange for their investment funds.