The United States Securities and Exchange Commission (SEC) has revoked the registration of ParagonCoin Limited, a crypto startup supported by popular American rapper Jayceon Terrell Taylor, also known as The Game.
This action was taken due to ParagonCoin Ltd’s failure to file periodic reports of its accounts, resulting in the commission verifying the accusations and finding the company in default.
According to the US SEC order that initiated legal action against the company, ParagonCoin Ltd allegedly violated Section 13(a) of the Securities Exchange Act of 1934 by failing to submit periodic reports.
The U.S. SEC accused the company of not filing a report since March 2019, after the company revealed a $10 million deficit for the previous year.
On February 10, 2022, the commission issued an order instituting proceedings against ParagonCoin Limited in accordance with Section 12(j) of the Securities Exchange Act of 1934, which allows it to suspend or revoke the registration of a security for a defined period of time if it fails to comply with the act.
In 2021, a $12 million lawsuit was filed against ParagonCoin Limited, the company’s employees, and The Game. The suit claims that The Game sought personal gain in an initial coin offering (ICO) that Paragon, INC. did not register.
During its Paragon (PRG) token sale from August 15 to October 15, 2017, Paragon allegedly raised $12 million in unregistered digital assets and deceived investors by promising unreasonable returns.
The court documents stated that the plaintiffs have adequate evidence to indicate that Taylor acted for his gain or Paragon’s benefit and, as a result, may be considered a statutory seller.
The Game is another United States rapper actively involved in the Web3, cryptocurrency, and NFT sectors. Recently, legendary rapper, Snoop Dogg, was revealed as one of the co-founders of Shiller, a streaming platform built on Web 3. Other rappers, such as Eminem, have also reportedly purchased NFTs.
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