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.
“In other words, there never was, and may never be, a Monkey Capital Market,” the filing states, while arguing that the pre-sale amounted to an unregistered securities offering that was marketed through the use of deceptive and misleading statements and advertising.
“Monkey Capital promoted that through its ‘all-star management team’ … it would be operating a decentralized hedge fund to invest in items such as SpaceX supply contracts and hostile public company takeovers and blockchain systems while simultaneously speculating on large blocks of cryptocurrency.”