Monkey Capital Market ICO Founder Guilty by Default; Ordered to Pay Back $1.2M
Upcoming Hearing Scheduled for Monkey Capital And Founder After Failure To Deliver ICO Product Post-Sale
Initial Coin Offerings (ICOs) are one of the most debated forms of funding found in the cryptocurrency industry. While there are many legitimate opportunities, there have been many projects brought to court over their lack of delivery or outright theft. Monkey Capital LLC was recently the respondent in one such court case, held in the Southern District of Florida.
The company, along with founder Daniel Harrison, was sued for their inability to bring a working product to investors after the token sale concluded. Furthermore, even before the case was filed, the company was asked to return those funds to the plaintiffs, which could have feasibly dismissed the case. However, the company and founder did not comply. Based on the decision of U.S. District Judge Donald Middlebrooks, Monkey Capital LLC, Monkey Capital Inc., and Harrison collectively entered a “final default judgement.”
A default judgement simply is the entry submitted when the respondent has “failed to plead or otherwise defend an action,” as noted in the ruling. The judge explained the rest of his ruling as well, saying, “Plaintiffs commenced this action against defendants, alleging they contributed cryptocurrency worth millions of dollars in advance of a scheduled initial coin offering (ICO) and supposed launch of a private cryptocurrency exchange and decentralized hedge fund (the ‘Monkey Capital Market'). Plaintiffs state that the ICO never occurred, the status of the development of the Monkey Capital Market is unknown and that defendants unlawfully pocketed investor money.”
These charges were found to be true, and the judge indicated in the ruling that the defendants actually use the crypto funds to pay for the expense of running their business and to pay themselves. To cover the damages that the plaintiffs endured in this theft, their case involved a request of $1.2 million.
Judge Middlebrooks was concerned over how they had determined the damages. To determine the value, a footnote was added to the ruling that indicated the price of the cryptocurrencies involved in the purchase were based on the information provided by CoinMarketCap on July 13th, 2018.
There will be a hearing on August 24th regarding this case.