ParagonCoin, a crypto startup owned by American rapper Jayceon Terrell Taylor, best known by his stage name “The Game,” according to the SEC has violated securities laws for failing to submit required disclosures leading to its registration being revoked.
The SEC withdrew the license of ParagonCoin Ltd, a cryptocurrency corporation that specializes in the marijuana market, after verifying its claims against the company and determining that it is in default.
The SEC began legal action against the company in February 2022 and noted that its most recent statement, from March 2019, said that it had lost more than $10 million in 2018.
The SEC claims that the cryptocurrency company disregarded a delinquency letter on the periodic reports that were sent by an SEC division.
The SEC further emphasized that the cryptocurrency startup failed to reply to its order beginning proceedings in February 2022 and failed to respond five months later to present justifications as to why it should not be declared in default.
In a class-action lawsuit in 2021, Taylor and the executives of the cryptocurrency business were found to be jointly liable for more than $12 million. The firm was accused of breaking the law when it conducted its $70 million initial coin offering in 2017, according to the lawsuit.
While The Game failed in the cryptocurrency space, another rapper has begun to take on the role of Web3’s spokesperson. The renowned rapper has made numerous Web3 collaboration announcements and was recently identified as the co-founder of the live-streaming platform Shiller, which uses Web3.
Snoop Dogg and Eminem also used their nonfungible Bored Ape Yacht Club tokens in the music video for their song “From The D 2 The LBC” on June 24, 2022. Both rappers appeared in the music video on occasion as animated Bored-Ape characters.
