There are a lot of people that believe there’s something in a name. Monkey Capital, a company that raised $5 million in a pre-ICO is facing a class action lawsuit in which investors are alleging they were deceived into investing in the crowdsale. The company which promised decentralized hedge funds has been sued by some half dozen investors who are demanding for their money to be returned by the company.
The suit against the company was initiated because the investors said that the ICO never was concluded and that the company website was pulled down leaving them in a quandary in what may be an ICO scam. Monkey Capital was sued for damages by the plaintiffs in a Florida court where they are demanding for their money as well as to be paid damages for lost time in their Investments, which was made in bitcoins.
According to the investors, due to the appreciation in value, the $5 million worth of bitcoins raised by Monkey Capital would be worth more than $14 million today. They alleged that after being delayed for weeks, the company ICO website finally went off the web.
The investors admitted that they no longer expect to make the profit from their investment but are seeking relief from the court in the hope that their investment would be returned to them. The company founder and director Daniel Harrison, who is the defendant in the suit had promoted the Monkey Capital as a decentralized hedge fund that would operate within an ecosystem in which the Monkey Coin and Coeval tokens would be used. The token sale never really went through the anticipated course.
The investors also sought to know from the court if Coeval and Monkey Coin would not be classified as securities in view of recent SEC statements on certain tokens having features of securities. Though as at the time they invested in the Monkey Capital pre-ICO in July and August, that information was not available to them. Their concern stems from Monkey Capital ICO not having been registered by SEC.
Daniel Harrison, who obviously is at large was charged with misrepresenting and deceiving the investors into investing in an ICO that never went through, raising more fears that investing in the unregulated ICO market without due diligence is still a risky venture.