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HomeLaw & PoliticsSEC files lawsuit against Dragonchain for unregistered crypto asset securities

SEC files lawsuit against Dragonchain for unregistered crypto asset securities

The Securities and Exchange Commission (SEC) has filed a lawsuit in the Western District of Washington, charging the defendants with breaking the Securities Act of 1933’s Sections 5(a) and (c). The SEC asserts that Dragonchain and its founder John Joseph Roets illegally raised over $16 million in “proceeds through unregistered offers and sales of the securities to approximately 5,000 investors in the United States and abroad” and are variously liable for aspects of the alleged scheme that took place in 2017. The SEC claims that these individuals are responsible for various aspects of the alleged scheme, which took place in 2017.

Dragonchain marketing services are also accused of producing illegal content, as well as making statements that their token’s adoption rate would increase as the underlying technology advanced, and having members of their staff and agents publicly discuss DRGN’s investment value, pricing, and “listing” on trading platforms, among other things. The SEC makes these allegations.

“Between 2019 and 2022, Roets, Dragonchain, the Foundation, and TDC allegedly offered and sold approximately $2.5 million worth of DRGNs to cover business expenditures to further develop and market Dragonchain technology, some of which occurred after a state regulator found DRGNs to be securities” SEC said in a statement.

The Securities and Exchange Commission (SEC) is seeking, among other things, a permanent injunction as well as the return of ill-gotten profits that allegedly resulted from a scheme that was carried out by Dragonchain Inc., Dragonchain Foundation, and the Dragon Company.

The SEC has been cracking down on cryptocurrency firms between the years 2011 and 2015. During this time period, more organisations were caught for submitting suspicious activity reports that were insufficient, which prohibited authorities from examining possible wrongdoing.

In the past, the SEC has brought lawsuits against corporations in a variety of US Courts, and they have just opened an inquiry into the largest bitcoin exchange Coinbase.

Read more at CryptoShrypto:

Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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