Online eSports betting operator Unikrn has reached a deal to pay $6.1m to US securities regulators to resolve a probe into its 2017 initial coin offering (ICO).

The Seattle-based Unikrn launched its UnikoinGold (UKG) token in 2017, raising $31m from rank-and-file investors and notable individuals such as billionaire investor Mark Cuban and Ethereum co-founder Anthony Di Iorio. But the US Securities and Exchange Commission (SEC) said Unikrn failed to register the offering or seek an exemption from rules regarding investment contracts.

Unikrn neither admitted nor denied the SEC’s allegations, but in a settlement order issued Tuesday, the SEC said Unikrn agreed to pay a $6.1m penalty — which represents “substantially all of the company’s assets” — to be distributed to “already-harmed investors” through a Fair Fund.

Kristina Littman, chief of the SEC Enforcement Division’s Cyber Unit, said failure to follow the SEC’s securities registration and exemption framework “harms investors and our markets.” In addition to ameliorating investors’ losses, the settlement “includes measures to prevent future sales to retail investors, including the [permanent] disabling of the tokens.” Unikrn has requested the removal of UKG from all digital asset trading platforms.