Thursday, December 8, 2022
 

SEC Sets Its Sights On Dragonchain; Files Formal Charges

  • The SEC has zeroed in on another target in the cryptocurrency industry.
  • Allegedly, Dragonchain conducted an unregistered offering of Dragon (DRGN) tokens through a discounted presale to members of a crypto investment club.
  • John Joseph Roets responded to these allegations.

The U.S. Securities and Exchange Commission (SEC) has zeroed in on another target in the cryptocurrency industry. The Commission announced charges against John Joseph Roets, the chief architect of Dragonchain.

The charges are for allegedly raising $16.5 million in unregistered “crypto asset” securities offerings.

According to the SEC, Roets, Dragonchain, and the Foundation conducted an unregistered offering of Dragon (DRGN) tokens through a discounted presale to members of a crypto investment club and through an initial coin offering (ICO) in October and November of 2017.

Regarding the issue, the SEC wrote: “Through this offering, the defendants allegedly raised approximately $14 million from approximately 5,000 investors worldwide, including the United States.”

The SEC also alleges that DRGN was marketed to investors, touting its investment value, pricing and listing on trading platforms.

In addition to this, the SEC also states that between 2019 and 2022, the Dragonchain Foundation and The Dragon  Company offered and sold about $2.5 million worth of DRGN to cover business expenses and market Dragonchain.

Roets responded to these allegations by pledging to provide a clear argument for existence and demonstrate that the commission should not charge any of the parties involved with intentional or unintentional violation of U.S. securities laws.

The tech leader also referred to the fact that the SEC has made the same allegations about many other projects. He says that this then leaves him with the impression that the SEC is picking and choosing projects to target.

Roets concluded that these facts lead him to wonder whether the SEC really understands the technology enough to effectively regulate it.

  • The SEC has zeroed in on another target in the cryptocurrency industry.
  • Allegedly, Dragonchain conducted an unregistered offering of Dragon (DRGN) tokens through a discounted presale to members of a crypto investment club.
  • John Joseph Roets responded to these allegations.

The U.S. Securities and Exchange Commission (SEC) has zeroed in on another target in the cryptocurrency industry. The Commission announced charges against John Joseph Roets, the chief architect of Dragonchain.

The charges are for allegedly raising $16.5 million in unregistered “crypto asset” securities offerings.

According to the SEC, Roets, Dragonchain, and the Foundation conducted an unregistered offering of Dragon (DRGN) tokens through a discounted presale to members of a crypto investment club and through an initial coin offering (ICO) in October and November of 2017.

Regarding the issue, the SEC wrote: “Through this offering, the defendants allegedly raised approximately $14 million from approximately 5,000 investors worldwide, including the United States.”

The SEC also alleges that DRGN was marketed to investors, touting its investment value, pricing and listing on trading platforms.

In addition to this, the SEC also states that between 2019 and 2022, the Dragonchain Foundation and The Dragon  Company offered and sold about $2.5 million worth of DRGN to cover business expenses and market Dragonchain.

Roets responded to these allegations by pledging to provide a clear argument for existence and demonstrate that the commission should not charge any of the parties involved with intentional or unintentional violation of U.S. securities laws.

The tech leader also referred to the fact that the SEC has made the same allegations about many other projects. He says that this then leaves him with the impression that the SEC is picking and choosing projects to target.

Roets concluded that these facts lead him to wonder whether the SEC really understands the technology enough to effectively regulate it.

 

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