SEC Strikes Dragonchain Over Unregistered Crypto Securities
The US Securities and Exchange Commission (SEC) has sued Dragonchain founder John Joseph Roets for offering unregistered crypto asset securities.
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The watchdog said in a statement that after a successful initial coin offering of the DRGN token, which took place in 2017 and brought Roets $14 million, Dragonchain sold approximately $2.5 million worth of DRGN to «cover business expenditures.» According to the SEC’s estimations, Dragonchain sold its token to 5,000 investors around the world, including US citizens.
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Amid the news, DRGN plunged by more than 15% to $0.02, according to Nomics. The token’s market capitalization decreased to $8.1 million. Dragonchain is an open-source hybrid blockchain platform for enterprises and startup to build decentralized applications (dApps).
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