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.
Giga Watt, a startup that held an initial coin offering (ICO) to raise money to build a cryptocurrency mining facility, is being sued for allegedly conducting an unregistered securities offering.
The complaint was filed by a group of plaintiffs that contributed more than $20 million in cryptocurrency – with a current estimated valuation of $100 million – during the project's token sale in July and August. In return for their contributions, investors were to be issued either Giga Watt tokens that would grant them exclusive rights to use the company's facilities rent-free for 50 years, or mining equipment and supplies to be deployed and set up by the on-site project team.
Asserting that construction deadlines have not been met and promises to refund contributions have not been honored, the plaintiffs are seeking the return of their investments.