Dragonchain Sued By SEC For $16.5 Million ‘Unregistered’ Token ICO

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Last Updated on August 18, 2022 by Bitfinsider

The Securities and Exchange Commission charged organizations associated with Dragonchain, as well as its chief architect, John Joseph Roets, with generating $16.5 million through “unregistered crypto asset” securities offerings.

The defendants are accused of violating the Securities Act of 1933 by amassing millions of dollars in 2017 through the sale of Dragon (DRGN) tokens in an initial coin offering aimed primarily at cryptocurrency investors, according to the court petition.

Companies in the cryptocurrency industry use initial coin offerings to raise funds quickly. Before conducting a public release, a company launches a new token or currency and invites people to purchase it.

The regulatory action is part of a larger anti-cryptocurrency campaign. Dragonchain must return the $16.5 million plus interest, according to the regulatory agency.

Blockchain public ledger In 2016, Dragonchain was founded in Seattle as a private blockchain network for Disney. Dragonchain describes itself as a hybrid blockchain for “resolving business issues on an enterprise scale.”

Between 2019 and 2022, Roets, Dragonchain, the Foundation, and The Dragon Co. were said to have issued and sold approximately $2.5 million in DRGN tokens to finance business expenses and further develop and market Dragonchain technology.

The State of Washington also referred to DRGN tokens as securities in a court document from 2021. Dragonchain, according to the court, “is neither currently nor previously registered to sell its securities in the state of Washington.”

Dragonchain was fined $50,000 and ordered to cease and desist, according to the complaint.


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Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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