The US Securities and Exchange Commission (SEC) has filed charges against Dragonchain-related entities along with the founder and controlling person, John Joseph Roets, alleging that the defendants made an unregistered cryptocurrency offering.

The SEC filed the lawsuit in the US District Court for the Western District of Washington on Tuesday (Aug 16, 2022). According to the US regulator, Roets and his three entities, Dragonchain Inc., Dragonchain Foundation and Dragon Company, “illegally raised” $16.5 million through the unregistered offering of DRGN tokens. A large portion of the funds ($14 million) was raised from some 5,000 investors worldwide through an initial coin offering (ICO) in 2017. Between 2019 and 2022, the defendants also sold DGRN tokens worth $2.5 million to develop and promote Dragonchain technology. and take care of business expenses. Following the defendants’ alleged violation of federal securities laws, the SEC is seeking “permanent injunctions, restitution with pretrial interest, civil penalties, and conduct-based injunctions against each defendant.” The latest development is similar to a lawsuit the SEC filed against Ripple in December 2020. The agency accused the company, CEO Brad Garlinghouse and co-founder Chris Larsen, of making an unregistered $1.3 billion securities offering. Meanwhile, the defendants have refuted the SEC’s claims, stating that XRP is not a security, while the legal battle between Ripple and the agency is still ongoing. Recently, the securities regulator launched an investigation into cryptocurrency exchange giant Coinbase. As CryptoPotato previously reported, the SEC believes that some of the tokens listed on the platform are unregistered securities.

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This post SEC Slams Dragonchain With Lawsuit For Selling Unregistered Securities

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