Music streaming

Music streaming company Akazoo reaches $ 38.8 million settlement in fraud action

People leave the headquarters of the United States Securities and Exchange Commission (SEC) in Washington, DC on May 12, 2021.

Andrew Kelly | Reuters

The United States Securities and Exchange Commission said Wednesday it settled charges against Akazoo for $ 38.8 million after the company allegedly defrauded investors worth tens of millions of dollars.

Akazoo, a Greece-based music streaming company, went public through a specialist acquisition company in 2019. The SEC froze Akazoo’s assets a year ago as part of an investigation into the allegations of the company.

According to the SEC, Akazoo told investors that it is a fast growing music streaming company focused on emerging markets with more than 38.2 million registered users, but in reality the company does not had no paying users and negligible income.

An Akazoo lawyer, who neither admitted nor denied the SEC findings, declined to comment.

Akazoo accepted a judgment in April 2021 that prevents the company from violating anti-fraud and reporting laws. The settlement, announced Wednesday, orders Akazoo to return $ 38.8 million in ill-gotten gains that will go to victims of investors and settlements related to private class actions.


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