og.15731 377 The SEC is turning up the heat on cryptocurrency businesses!

The SEC is turning up the heat on cryptocurrency businesses!

-The SEC filed a complaint against Dragonchain for engaging in an unlawful offer and sale of securities in violation of the Securities Act of 1933.
-The SEC alleges that in 2017, various entities and people related to Dragonchain conducted an unregistered offering of Dragon tokens (or DRGN) where they raised approximately $14 million from thousands of investors around the world, including investors in the United States.
-The SEC further contends that Dragonchain marketed these tokens as securities because, among other things, they promoted that the investment value of Dragon tokens would rise as the Dragonchain ecosystem matured and that the Dragon tokens would be listed on trading platforms.
-The SEC complaint concludes that Dragonchain distributed its sale of Dragon tokens without registering them with the SEC as required under federal securities laws.
-Given the SECs ramping up of personnel for enforcement of these types of token issuances, we can expect to see more enforcement on the horizon, including for tokens that have been traded for years, which is the case with the Dragon token.

 

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