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Wednesday, December 7, 2022

SEC Files Dragonchain And Its Founder: 2017 ICOs are Still Open, Apparently

The commission declared that it would request conduct-based injunctions, disgorgement with prejudgment interest, and permanent injunctions.

An initial coin offering (ICO) from a blockchain project that the Walt Disney Company created in 2017 has become the subject of a complaint from the United States Securities and Exchange Commission, or SEC.

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The SEC announced on Tuesday that they had filed charges against John Joseph Roets, the founder of Dragonchain, the firm’s Foundation, the Dragon Company, and others for generating $16.5 million in a presale and initial coin offering in 2017. The blockchain’s DRGN coins were purportedly offered unregistered by the firm and the firm’s Foundation in an August 2017 presale and an October and November 2017 ICO, raising $14 million, claims the financial regulator Roets. Additionally, it is claimed that between 2019 and 2022, all three organizations and their creators sold $2.5 million of DRGNs “to finance business expenses to further develop and sell Dragonchain technology.”

SEC In Lawsuit War Against Dragonchain and Founder: 

The SEC advised businesses to register with the government agency in a report published in July 2017 before Dragonchain’s sale, implying that it intended to treat many ICOs as investment securities subject to applicable rules. Based on alleged violations of the Securities Act of 1933, the commission declared that it would seek “permanent injunctions, forfeiture with prejudgment interest, civil fines against and conduct-based injunctions” against Roets and the three businesses.

Roets was aware that the SEC intended to pursue charges for the sale of unlicensed securities before the statute of limitations expired, according to the letter dated May 2022 posted on Dragonchain’s Twitter account on Tuesday. He criticized the government body for its allegedly out-of-date attitude to crypto regulation.

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The Dragonchain blockchain was created by The Walt Disney Company in 2014, became an open source platform in 2016, and was made available to the general public in 2017. Former Disney workers later founded the Dragonchain Foundation to oversee the protocol.

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