Close Menu
    X (Twitter)
    Blockchain Journal
    • News
      • Blockchain News
      • Bitcoin News
      • Ethereum News
      • NFT
      • DeFi News
      • Polkadot News
      • Chainlink News
      • Ripple News
      • Cardano News
      • EOS News
      • Litecoin News
      • Monero News
      • Stellar News
      • Tron News
      • Press Releases
      • Opinion
      • Sponsored
    • Price Analisys
    • Learn Crypto
    • Contact
    • bandera
    Facebook X (Twitter) Instagram
    Blockchain Journal
    Home » SEC Files Complaint Against Dragonchain for Unregistered Initial Coin Offering

    SEC Files Complaint Against Dragonchain for Unregistered Initial Coin Offering

    0
    By hassan on August 17, 2022 Blockchain News, Cryptocurrencies, News
    SEC Files Complaint Against Dragonchain for Unregistered Initial Coin Offering
    Share
    Facebook Twitter LinkedIn Pinterest Email

    On August 16, the SEC accused Joe Roets and three affiliates, Dragonchain Inc., Dragonchain Foundation, and The Dragon Company of raising $16.5 million by selling unregistered crypto securities.

    According to the SEC, the defendants raised $14 million from about 5,000 investors around the world through Dragonchain’s ICO in 2017. They then made an additional $2.5 million in the period from 2019 to 2022 through the DRGN token sale. The company then funneled the money into its marketing and development campaigns, according to the SEC.

    “Dragonchain undertook its distribution of DRGNs without registering its offers and sales of DRGNs with the SEC as required by the federal securities laws, and no exemption from this requirement applied,” the complaint reads.

    The regulator is seeking permanent orders, restitution, civil penalties, and probation orders against Roets and his affiliated organizations.

    Roets confidently stated that he has a “very strong argument” against the allegations and that the SEC is “reviewing and targeting projects that they see as an opportunity to repress while giving freedom to other projects.”

    SEC’s Compliants Against Various Startups

    SEC Files Complaint Against Dragonchain for Unregistered Initial Coin Offering

    A slew of crypto startups launched ICOs to raise money for their tokens amid the bitcoin market boom at the end of 2017, running afoul of the SEC, which considers token sales securities that should be subject to federal securities laws and information disclosure. The SEC has since brought cases against many of them.

    Before Dragonchain’s offering, the SEC issued a report in July 2017 advising companies to register with the government agency, implying that many ICOs would be treated as securities offerings subject to applicable rules.

    The commission stated that it would pursue “permanent injunctions, disgorgement with prejudgment interest, civil penalties against, and conduct-based injunctions” against Roets and the three corporations for alleged Securities Act of 1933 violations.

    Roets was aware that the SEC intended to pursue charges connected to the sale of unregistered securities before the statute of limitations expired, according to a letter dated May 2022 and shared to Dragonchain’s Twitter account on Tuesday. He chastised the federal agency for what appeared to be an outmoded attitude to crypto regulation.

    https://t.co/y0V9s13t87 https://t.co/KcqVCbI2WP

    — Dragonchain 🇺🇸 (@dragonchain) August 16, 2022

    About DragonChain

    Seattle-based Dragonchain is an enterprise blockchain startup that grew out of a platform originally developed by the Walt Disney Co. (DIS) in 2014. Since going open source in 2016 Dragonchain has faced stumbling blocks navigating regulations challenges. In 2018, the firm forced one of its affiliate projects, Norwegian startup lagon, to return ICO investors’ funds after what appeared to be concerns over the SEC’s regulatory crackdown.

    The SEC has been ramping up its enforcement efforts recently. Last month, it declared nine crypto tokens listed on Coinbase as unregistered securities and investigated the exchange for allowing customers to trade those tokens. However, the SEC’s approach to regulation by enforcement has been met with criticism from crypto industry leaders, lawmakers, and regulators.

    blockchain Dragonchain Featured Legal Network SEC
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    hassan
    • LinkedIn

    Related Posts

    Hyperliquid’s USDH stablecoin call sparks fairness and governance debate

    September 5, 20253 Mins Read

    Ethereum ICO whale stakes 150,000 ETH ($646M) after three years of inactivity, reducing supply and signaling confidence

    September 5, 20253 Mins Read

    SharpLink to explore staking part of its $3.6 billion ETH treasury on Linea

    September 5, 20253 Mins Read

    Solana pulls back after profit taking near the $210–$212 barrier

    September 5, 20253 Mins Read

    Ether leads crypto market decline amid ETF outflows, whale accumulation, and regulatory uncertainty

    September 5, 20253 Mins Read

    Strategy Inc.’s path to the S&P 500 faces committee discretion, extreme volatility, and Bitcoin-dependent results

    September 5, 20253 Mins Read

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    © 2025 Blockchain Journal

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.