Rapper The Game's Crypto Firm Licence Revoked
A crypto firm backed by US rapper Jayceon Terrell Taylor, also known as "The Game", had its licence revoked by the US Securities and Exchange Commission for violating securities laws after falling short of submitting the necessary periodic reports.
The crypto startup, called ParagonCoin Limited, leverages blockchain technology for the legal cannabis sector and was founded in 2017 by Jessica VerSteeg.
Why was ParagonCoin Limited’s registration revoked?
According to a class-action suit against ParagonCoin Limited in January 2018, the cryptocurrency startup allegedly violated securities laws in the initial coin offering (ICO) it held back in 2017, raising $70M.
The cannabis crypto firm promoted its native token 'PRG' as a currency for the legal cannabis industry and hired American rapper The Game to promote its offering.
However, it failed to register its token sale with the SEC. As such, a civil penalty was imposed on the cryptocurrency startup, requiring it to pay a fine of $250,000, register its token PRG as a security, and file periodic reports with the SEC.
The SEC was prompted to commence legal proceedings against the firm in February 2022, as it violated the terms of its settlement with the SEC. ParagonCoin Limited failed to file a report since March 2019, in which the company stated that it lost more than $10M in 2018.
According to the SEC, the cannabis cryptocurrency startup ignored a delinquency letter sent to it by the SEC. Additionally, the SEC pointed out that ParagonCoin Limited did not reply to its order commencing proceedings in February 2022, nor did it respond five months later to offer reasons why it should not be found guilty as things stand.
This is not the first mess The Game and the startup have found themselves in. However, this could be the last for ParagonCoin Limited. Back in 2021, both the rapper and the cryptocurrency startup's executives were found to be liable for more than $12M in a class-action lawsuit. You can read more here.
It is yet to be seen what steps ParagonCoin Limited will take to salvage the situation. Rapper The Game, meanwhile, continues to thrive in the Web3 space, with numerous partnerships in place, including as co-founder of the popular Web3 live-streaming platform, Shiller.
Author: Surajdeep Singh
Surajdeep Singh has been working in the tech sphere as a marketing guru and journalist for over 6 years, with his speciality laying in blockchain and Web3. He has donned several hats in marketing and journalism over the years and worked with many reputable brands. Feel free to reach out to him on LinkedIn!