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Crypto startup backed by rapper The Game shut down by SEC for violating securities laws

Rapper The Games crypto startup gets registration revoked

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TL;DR

  • SEC revoked the registration of crypto startup ParagonCoin Limited, which American rapper Jayceon Terrell Taylor backed (aka “The Game”).
  • The SEC said that ParagonCoin failed to file required periodic reports in violation of securities laws.

The U.S. Securities and Exchange Commission (SEC) revoked the registration of crypto startup ParagonCoin Limited, which American rapper Jayceon Terrell Taylor backed (aka “The Game”), for failing to file required periodic reports in violation of securities laws. The SEC initiated proceedings against the company in February 2022, noting that its last filing from March 2019 showed it had lost over $10 million in 2018. As a result, the SEC confirmed its allegations and determined that the company was indeed in default of its regulations.

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An excerpt from the document that revoked ParagonCoin’s registration. Source: Law360

The Securities and Exchange Commission (SEC) reported that the crypto company had neglected a delinquency letter about its periodic reports sent by an SEC division and failed to respond to the SEC’s order initiating proceedings in February 2022. Furthermore, despite the fact that five months have passed, the crypto startup did not explain why it should not be found in default.

In 2021, Taylor and several other executives of the crypto startup were held responsible for a class-action lawsuit accusing the company of violating securities law when it launched its $70 million initial coin offering in 2017. As a result, they were jointly liable for more than $12 million in damages.

Meanwhile, another rapper has emerged as a key figure in Web3: the legendary Snoop Dogg. However, he has announced several partnerships within the Web3 space and was recently revealed as co-founder of Shiller, a live-streaming platform powered by Web3 technology. On June 24, 2022, Snoop Dogg and Eminem dropped a music video for their song “From The D 2 The LBC”, featuring their own non-fungible tokens (NFTs) designed in the Bored Ape Yacht Club style. Both rappers were animated as their Bored-Ape characters throughout the clip.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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