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Music streamer Akazoo agrees to a $ 38.8 million settlement for fraud charges



(Reuters) – The US Securities and Exchange Commission said on Wednesday that it had filed charges against Akazoo SA, a Greek company that claims to be a music streaming company, of $ 38.8 million after the company is alleged to have defrauded investors from tens of millions of dollars.

Akazoo was listed through a special purpose acquisition company in 2019. The SEC froze the company's assets a year ago as part of an investigation into claims by the company.

According to the SEC, Akazoo told investors that it was a fast-growing music streaming company focused on emerging markets with over 38.2 million registered users and $ 120 million in annual revenue, but in reality the company had no paying users and negligible revenue.

A lawyer for Akazoo, which did not acknowledge or deny the SEC's observations, declined to comment.

Since the end of 2020, the SEC has tightened scrutiny of SPAC, listed shell companies used to disclose private companies in a process such as a more traditional and long IPO. . The SEC has issued investor warnings, conducted a search of banks involved in the transactions, and said it is looking at regulatory changes. space agency, said David Peavler, regional director of the SEC's Fort Worth Regional Office, in a statement.

Akazoo agreed to the ruling in April 2021

. The settlement, announced on Wednesday, orders Akazoo to release $ 38.8 million.

The SEC said it would be totally satisfied with the company's $ 35 million payment to investors and settlements in connection with several private class actions.

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