The complaint alleges the blockchain startup failed to register more than $16 million in crypto asset securities. https://www.sec.gov/litigation/litreleases/2022/lr25468.htmAccording to the SEC Press Release: Defendants "conducted an unregistered offering ... ("DRGN") in two phases: (1) a discounted "presale" in August 2017 to members of a crypto investment club, and (2) an initial coin offering ("ICO") in October and November 2017 ..." "Through this offering, the defendants allegedly raised approximately $14 million from approximately 5,000 investors around the world, including the United States." "The defendants marketed the offering to crypto investors, and their personnel and agents publicly discussed DRGN's investment value, pricing, and "listing" on trading platforms, among other things." The SEC ... charges the defendants with violating Sections 5(a) and (c) of the Securities Act of 1933 ("Securities Act") ... [and] seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties against and conduct-based injunctions against each defendant. Twitter Thread
