SEC Sues Dragonchain for Raising $16.5 Million in Unregistered Securities

The U.S. Securities and Exchange Commission (SEC) seems quite determined to put a stop to what it deems to be unlawful securities trading in the crypto industry. This time, the Commission announced charges against Dragonchain and its chief developer, John Joseph Roets, for making $16.5 million by selling Dragonchain’s token, DRGN.

According to the lawsuit, Roets and Dragonchain made $14 million of that money in 2017, through a presale offered to members of a cryptocurrency investment group and in an ICO (initial coin offering). Then, between 2019 and 2022, they sold the additional $2.5 million worth of DRGN.

Dragonchain is a “hybrid blockchain dealing with enterprise business problems”. The company already received a $50,000 fine in 2021, for selling unregistered securities in the state of Washington. Roets stated that the SEC is basing its allegations on laws dating from the 1930s, which aren’t fit for handling cryptocurrency.