The US Securities and Exchange Commission has filed a complaint against Dragonchain.

In 2017, the Securities and Exchange Commission (SEC) of the United States filed a lawsuit over an initial Dragonchain sale (ICO) from a Walt Disney Company blockchain-based initiative. The SEC stated in a Tuesday notice that they had accused Dragonchain, the Dragon Company, the Dragon Foundation, and John Joseph Roets (the creator of such projects) of receiving almost $16.5M in a 2017 initial coin offerings and preorder.

The SEC has filed a complaint against Dragonchain and its creator.

According to the financial authority, Dragonchain Foundation, Dragonchain, and Roets allegedly orchestrated an unlicensed offering including the DRGN tokens of the blockchain in an August 2017 presale as well as the ICO in October and November of the same year, earning up to $14 million. Aside from that, the three businesses stated above, as well as their ceo, are suspected of trading DRGNs valued roughly $2.5 million.

They purportedly did so to cover corporate expenses, make further developments, and push for Dragonchain technology between 2019 and 2022. The securities commission published a report in July 2017 in preparation of the Dragonchain offering. It pushed the enterprises to register with the government-based authority in the relevant report, indicating that it has a plan to assess various ICOs as well as securities offerings subject to relevant regulations.

The Ceo of Dragonchain accuses the SEC of Using an Older Approach

The agency indicated that it would seek to vacate the prejudgment interest, permanent injunctions, civil penalties, and conduct-based court orders issued on Roets and the three platforms described above for alleged violations of the Securities Act of 1933.

According to a letter sent by the SEC to Dragonchain’s Twitter account, Roets was aware of the SEC’s plan to prosecute charges related to unlicensed securities prior to the expiration of the restriction decree.

He chastised the government-backed institution for allegedly using an up-to-date approach to cryptocurrency legislation when it was not. The Walt Disney Company launched the creation of the Dragonchain blockchain in 2014, turning it into an open source venue before releasing it to the general public in 2016. Former Disney employees formed the Dragonchain Foundation to administer the code.