The US Securities and Exchange Commission (SEC) has sued Dragonchain founder John Joseph Roets for offering unregistered crypto asset securities.
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The watchdog said in a statement that after a successful initial coin offering of the DRGN token, which took place in 2017 and brought Roets $14 million, Dragonchain sold approximately $2.5 million worth of DRGN to "cover business expenditures." According to the SEC's estimations, Dragonchain sold its token to 5,000 investors around the world, including US citizens.
Amid the news, DRGN plunged by more than 15% to $0.02, according to Nomics. The token's market capitalization decreased to $8.1 million. Dragonchain is an open-source hybrid blockchain platform for enterprises and startup to build decentralized applications (dApps).
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