Bitfinex and a blockchain project launched by Kim Dotcom have “mutually agreed” to part ways, scuppering a planned initial exchange offering (IEO) for the controversial internet entrepreneur.

Citing the current “regulatory environment” and the “risks associated with raising funds” for the project, Bitfinex said in a blog post Wednesday that it was in the interest of its “community” not to host the sale of Dotcom’s kimcoin token.

Dotcom was notably the founder of Megaupload, a file-sharing site shut down in 2012 for violating piracy laws by the U.S. Department of Justice. He’s currently still in the process of appealing extradition to the United States from New Zealand where he resides.

The K.im project is a blockchain-based content-monetization network, touted on its website as “providing a comprehensive suite of advanced services and technologies to manage, protect and sell every digital content.”

The IEO model of fundraising emerged in 2019 and sees exchange platforms offering listing support and launch campaigns for new startup tokens. To date, Bitfinex has conducted token sales for projects Dusk, Ampleforth and Ultra, among others.

Image via Kim Dotcom/Twitter