The Securities and Exchange Commission is charging Dragonchain founder Joe Roets for allegedly raising $16.5 million thru the sales of unregistered securities.
Key Takeaways
- The SEC is charging Dragonchain Inc., Dragonchain Basis, The Dragon Company, and Dragonchain founder and CEO Joe Roets for allegedly promoting unregistered securities.
- The agency claims the defendants raised over $16.5 million from 5,000 worldwide all the scheme thru Dragonchain’s initial coin providing and within the years since.
- The SEC is has been ramping up enforcement actions in fresh months, drawing fierce criticism from the industry.
The SEC has charged Dragonchain with promoting $16.5 million in unregistered securities; Dragonchain founder and CEO Joe Roets says he has a “very acquire case” against the costs.
SEC Prices Dragonchain
U.S. regulators are coming after Dragonchain.
The Securities and Exchange Commission (SEC) introduced at this time time that it used to be charging Dragonchain founder and CEO Joe Roets for allegedly raising $16.5 million by promoting unregistered crypto securities. The agency is furthermore charging three entities associated with Roets: Dragonchain Inc., Dragonchain Basis and The Dragon Company.
In maintaining with the SEC, the defendants made $14 million from approximately 5,000 traders world extensive thru Dragonchain’s initial coin providing in 2017. They then made a further $2.5 million within the length between 2019 and 2022 thru the valid promoting of the DRGN token.
The SEC is looking out for eternal injunctions, disgorgement with prejudgement interest, civil penalties, and conduct-based injunctions against Roets and his affiliated entities.
Roets, who had beforehand been notified by the SEC of the investigation, preemptively addressed the costs in an open letter dated Would possibly well merely 25. He acknowledged he used to be confident he had a “very acquire case” and that the SEC used to be “deciding on and deciding on initiatives to target, generally singling out the ones with the excellent different to disrupt incumbent interests, whereas giving a free pass to others.”
The SEC has ramped up its enforcement efforts fair no longer too lengthy within the past. Closing month it declared nine crypto tokens listed on Coinbase had been, basically, unregistered securities; it is furthermore reportedly investigating the commerce for allowing its customers commerce such tokens. The agency’s regulatory skill, which has been described as “legislation by enforcement” by crypto industry leaders, lawmakers, and regulators alike, has then but again been met with fierce criticism.
Disclosure: At the time of writing, the writer of this fragment owned ETH and several other other cryptocurrencies.
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