SEC sued the founder of Dragonchain for an unregistered ICO – Bits Media

United States Securities and Exchange Commission (SEC) filed a lawsuit against several legal entities, standing behind the cryptocurrency project Dragonchain, for conducting illegal ICO.

According to the regulator, Founder Dragonchain John Joseph Roets (John Joseph Roets) registered Several legal entities for the ICO of the Dragonchain project. The total cost of tokens sold was $16.5 million. According to SEC, It was an unregistered securities offer, which violates the law on US securities.

ICO Dragonchain took place in October and November 2017 of the year. The sale of project tokens attracted about 5 000 investors around the world, including residents of the United States. Initially, Roets sold tokens on $14 million, And additional $2.5 Milln attracted in the period from 2019 by 2022 the years. The regulator requires “civil fines and compensation” from the founder of Dragonchain.

Earlier, another American regulator is the US commodity trade commission (CFTC) -accused the manager of hedge funds of fraud with BTC to $12 million.