The US Securities and Exchange Commission (SEC) has filed a lawsuit against several legal entities behind the Dragonchain cryptocurrency project for conducting an illegal ICO.
According to the regulator, Dragonchain founder John Joseph Roets has registered several legal entities for the Dragonchain ICO project. The total value of the tokens sold was $16.5 million. According to the SEC, this was an unregistered securities offering, which violates the US Securities Act.
The Dragonchain ICO took place in October and November 2017. The sale of project tokens attracted about 5,000 investors worldwide, including US residents. Roets initially sold $14 million worth of tokens and raised an additional $2.5 million between 2019 and 2022. The regulator is seeking “civil fines and redress” from the founder of Dragonchain.
Earlier, another US regulator, the US Commodity Futures Trading Commission (CFTC), accused a hedge fund manager of $12 million BTC fraud.