Famous American rapper and actor Jayceon Terrell Taylor, popularly known as The Game, is currently facing a $ 12 million charge for allegedly promoting an illegal initial coin offering (ICO).
According to a recently modified official storage area, had promoted the unregistered token sale of Paragon Coin, a tech company that came under regulatory scrutiny in early 2017.
The Paragon Coin Saga
Paragon touted itself as a cryptocurrency company that would use the power of blockchain technology to promote the cannabis industry.
To pique market interest, the company recruited the American rapper, who publicly promoted PRG tokens on his social media.
Standing with Paragon CEO and former model Jessica Versteeg, The Game said in a tweet in 2017 that Paragon was “preparing to revolutionize cannabis and the world”.
The ICO was a huge success as it raised a total of $ 70 million from investors between April 15 and October 15, 2017.
However, in 2018 an investor in the company, Astely Davy, filed a lawsuit against Paragon for conducting an unregistered stock sale, insisting that the company should be forced to reimburse ICO participants since it was not registered with the United States Securities and Exchange Commission (SEC). .
Following the filing, the SEC ordered Paragon and its executives to reimburse all of their investors as the project failed to comply with federal securities law in the United States.
The involvement of the Game remained initially unproven, which is why it was not prosecuted. However, in light of recent events, U.S. Federal District Judge Jeffrey S. White revealed in the amended complaint that the court had received extensive incriminating evidence against him.
According to the judge, the rapper had “acted for his own benefit or that of Paragon” and therefore will now be considered a member of the project.
He also added that The Game is now liable to the company and its executives in a $ 12 million pre-judgment and post-judgment interest.
The hunt for ICO promoters
Although the use of ICOs by crypto projects to raise funds has been phased out, US regulators continue to hunt down projects and celebrities that conducted or promoted unregistered ICOs between 2017 and 2018.
Paragon and The Game aren’t first on the SEC’s list. Earlier this year, the Commission charged three individuals involved in an ICO scam sponsored by American actor Stephen Seagal.
Featured image courtesy of RadarOnline
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