SEC Charges Dragonchain With Selling Unregistered Crypto Assets

The SEC has laid charges against Dragonchain founder John Joseph Roets and his entities for selling unregistered cryptocurrency assets back in 2017.

According to the SEC, Roets— via Dragonchain Inc., Dragonchain Foundation, and the Dragon Company— raised $16.5 million in an unregistered offering of Dragon tokens to investors. The illegal offering was allegedly conducted in two parts, one being a discounted “presale” to investors part of a crypto club on August 2017, followed by an initial coin offering marketed towards the broader crypto investment community in October and November 2017.

The SEC accused the defendants of marketing the offering on various trading platforms, ultimately receiving investments from over 5,000 individuals around the world, which garnered approximately $14 million. The SEC’s investigation also found that between 2019 and 2022, the accused sold another $2.5 million worth of unregistered Dragon tokens, using the proceeds to cover various business expenses pertaining to further development and marketing of the Dragonchain technology.

Information for this briefing was found via the SEC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.