Crypto investors are not new to losses, as the failed Initial Coin Offerings (ICOs) of 2017 was one that massively resulted in losses for many investors. The resultant effect of the rampant crypto hacks, sim swapping, and crypto scams have also left many crypto investors in tears, with bewildering losses. However, investors of the Paragon failed ICO project of 2017, which cost them at least $12 million, are now set to be partially rewarded by the U.S Securities and Exchange Commission (SEC). The SEC has now confirmed that it will distribute the $170,000 accrued from penal charges to the failed cannabis-themed project investors.
Paragon handled its business inorderly
In October 2017, PargaonCoin was one of the ICOs of the year, alongside other Blockchain, who collected money from investors to develop their Blockchain. The Blockchain was able to accrue $12 million from investors, despite the project theme being unpopular. According to its founders, who are also married couples, the project aim was to improve the overall adoption of the Blockchain service and provide the Cannabis business globally with loans, which is intended to yield more returns to the project.
The cannabis business, despite a few licenses to operate in the country, is still operating a bit under the raider and is unable to get financial support from famous names. Unfortunately for Paragon, the Blockchain firm began to adopt business strategies that made them famous, and the SEC started to oversee their affairs, barely after a year after it began operating.
On the other hand, the SEC had now started to impose business restrictions on the crypto firm, requiring them to register their native token-PRG as securities. The Blockchain firm agreed to return all their investors’ funds in the project and was charged a $250,000 fine by the SEC.
Investors continue to demand their funds
The project handlers, much to the SEC’s request, registered its token PRG as Securities in the following year. Unfortunately, while registering the token, the BLockchain claimed it had lost more than $11 million in its valuation and was able to pay only $170,000 as a fine to the SEC, much to the SEC’s dismay and their investors who wanted their money back.
The investors of the project, late in 2019, started to file a lawsuit against the couple who were the owners of the project. Much to the request of their investors and the SEC, the project developers refused to respond to their investors and have vehemently refused to pay back. Last year April, they filed for bankruptcy, as investors took to social media to express their disgust at the project and its owners, who were now touring around Europe with private jets.
However, the SEC has now agreed that despite the paltry sum of $170,000 is available to the investors; it will create a sharing formula for how the funds will reach every dismayed investor of the project. However, the case is still in court, as investors demand that they are compensated for their investment in the failed project.