Cryptoknowmics 2022-08-17 11:11:17

SEC Sues Dragonchain Founder For Unregistered Initial Coin Offering

The founder of Dragonchain is the subject of a complaint from the U.S. Securities and Exchange Commission (SEC) for allegedly generating millions through unregistered offers of crypto asset securities. In particular, the SEC is suing John Joseph Roets and the three businesses he owns – Dragonchain, the Dragonchain Foundation, and The Dragon Company – because they failed to file more than $16 million in securities offerings involving digital assets for five years. Unregistered Crypto Asset Securities Offerings An unregistered offering of Dragon tokens (DRGN) was made by Roets, Dragonchain, and the Foundation to members of the crypto investing club through a discounted presale, according to a document filed in the U.S. District Court for the Western District of Washington. The SEC reports that Roets and the three Dragonchain organizations allegedly broke the Securities Act. They reportedly raised millions of dollars in 2017 by selling Dragon tokens in an ICO primarily targeted at cryptocurrency investors. According to the SEC, the money was channeled into marketing and development initiatives for Seattle-based Dragonchain. This enterprise blockchain start-up was first created inside Disney’s tech-focused Seattle headquarters in 2014. Dragonchain Foundation As stated by the SEC, $2.5 million worth of DRGNs were offered and sold between 2019 and 2022 by Dragonchain, the Dragonchain Foundation, and The Dragon Company to pay for bus...