The American Rapper The Game is now facing charges for promoting an unregistered ICO Paragon that raised $12 million from investors in 2017 as we can see more today in our latest crypto news.
The popular American rapper The Game or Jayceon Terrell Taylor is now facing $12 million charges for promoting an illegal initial coin offering. According to the official filing, he promoted an unregistered token sale of Paragon Coin which is a tech company that came under regulatory scrutiny in 2017. Paragon touted itself as a crypto company that will use the power of blockchain technology and promotes the cannabis industry. To boost the market interest, the company recruited the rapper who previously promoted the PRG tokens on his social media handles. Jessica Versteeg as the former CEO of Paragon hasn’t yet made a statement but the Game said in a tweet back in 2017 that Paragon is preparing to revolutionize cannabis in the world.
The ICO was a huge success as it raised $70 million from investors between April 15 to October 15. However, in 2018, investor Astely Davy filed a lawsuit against Paragon for conducting the unregistered securities sale and stated that the company should be forced to refund the ICO participants because it wasn’t registered with the US SEC. After the filing, the SEC ordered Paragon and its executives to refund the investors since the project failed to comply with the federal securities laws in the state.
The Game’s involvement remained unproven which is why he wasn’t prosecuted. In light of the events, the United States Federal District Judge Jeffrey S White revealed that in the amended complaint, the court received incriminating evidence against him. As per the Judge, the rapper acted for his own gain and will now have to be considered as a member of the project. He added that The Game is liable to the company and its executives in the $12 million prejudgements and post-judgment interest. The use #of ICO by crypto projects to raise funds really faded out but the regulators continue to hunt projects and celebrities that conducted or promoted ICOs between 2017 and 2018. Paragon is not the first on the SEC list because we saw individuals getting involved in ICO scams that were promoted by Steven Seagal, Floyd Mayweather, and Dj Khaled.
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