The U.S. Securities and Exchange Commission (SEC) cryptocurrency Initiated further legal action on the ICO (Initial Coin Offering) event.
SEC on Aug. Dragonchain (DRGN) and its founder, John Joseph Roets, for its pre-sale and initial coin offering, which had generated $16.5 million at the time.
SEC Wants Back $16.5 Million From Cryptocurrency Company
The commission calls the ICO an unregistered security offering and charges a public fine as well as its proceeds.
The pre-sale took place in 2017, right after the SEC’s July DAO Report. The report was a landmark, showing that the SEC would consider future ICOs as potential securities offerings.
Five years later, the SEC still continues to file lawsuits against some of these sales and an undisclosed number of paid promoters.
As it is known, the SEC is one of the largest cryptocurrencies in the world and once the second largest coins. Ripple (XRP) altcoin started legal action against him.
In the XRP lawsuit that has been going on for nearly two years, the regulator claims that the Ripple company is selling securities unregisteredly. The SEC even hints that the only cryptocurrencies that cannot be considered securities are Bitcoin and Ethereum.
Due to the long-running litigation, the XRP price had suffered a huge drop.
*Not investment advice.
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