$520K Settlement Reached to Resolve Allegations of Unregistered ICO by Atonomi, CENTRI

News | February 19, 2024 By:

On Friday, February 16, 2024, Law360 reported that a federal judge in Seattle granted preliminary approval to a $520,000 settlement deal between an investor and digital asset companies Atonomi LLC and CENTRI Inc. over unregistered securities offerings.

The order from U.S. District Judge Richard A. Jones comes after the parties notified the court in January that they had reached the proposed settlement to end the remaining claims in the investor lawsuit. It follows an earlier $6 million partial settlement approved in March 2023.

Investor Chris Hunichen first filed suit in 2019, alleging that Atonomi and CENTRI held an unregistered initial coin offering (ICO) of Atonomi tokens in 2018, raising approximately 46,000 units of Ethereum worth around $25 million at the time. Hunichen claimed this violated Washington’s securities laws. The companies denied wrongdoing and disputed the allegations.

In his recent motion, Hunichen told the court the proposed settlement “comprises all recoverable assets of the defendants,” noting defense counsel confirmed any insurance policy that might be available to satisfy a judgment has been exhausted, and that most remaining defendants are either judgment proof or would be judgment proof after expending assets to prepare for trial.

The preliminary approval means the proposed $520,000 settlement will move forward. If granted final approval, it would resolve the remaining litigation between the investor and Atonomi, CENTRI, and the five individuals.