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Blockchain companies accused of violating securities law receive donations from the USA
CONTENT

  • Cryptocurrency projects that violated securities laws received payments of $ 150,000 from the United States

  • One of the projects turned out to be a company with Russian roots

  • Companies in violation of U.S. law appear to have received payments under legal circumstances

International consortium of news organizations developing transparency standards.

More than 10 cryptocurrency projects accused of violating the law by the US financial regulator received financial assistance from the US authorities

About ten blockchain companies, which were previously accused by the US Securities and Exchange Commission (SEC) of various violations, received financial assistance from the consequences of the coronavirus pandemic under the US Payroll Protection Program..

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Accused of breaking the law ...

Forkast.News was the first to draw attention to this, but did not provide a link to the source of payments.

BeInCrypto managed to find only a few of the companies featured in the material from Forkast.News, through the MuckRock service, which tracks the submission of official requests to government departments.

“Revolutionary” product

A request from a certain Sam Reynolds to the Small Business Administration (SBA) and news from Forkast.News at least mentions Paragon Coin, Inc., which claims to have “changed the cannabis industry.”.

SBA has not publicly confirmed Paragon Coin receiving $ 150,000 payout.

“There is no indication that these companies have received funds fraudulently … However, this [payments] violates a rule of common sense … why is taxpayer money going to companies that the taxpayer-funded government agency (SEC) has already identified as fraudulent?” Writes Forkast .News.

In 2018, Paragon Coin agreed to pay the SEC a $ 250,000 fine due to an unregistered ICO, as a result of which the company raised about $ 12 million for the Paragon token (PRG).

At the same time, The Hollywood Reporter reported that the project raised much more – $ 70 million.

Russian roots

The project now has a bankruptcy notice dated April 2020 on the official website..

“We never considered ourselves experts in US securities, so we looked for recommendations from highly recommended lawyers who were supposed to help, unfortunately, they misinformed and let us down,” the notice says..

Paragon Coin was founded by Russian internet entrepreneur Yegor Lavrov and his wife, former Miss Iowa 2014 winner Jessica Verstig.

Forkast.News notes that in 2008 Lavrov also took the lead on the Internet in support of the campaign for the re-election of Vladimir Putin..

ParagonCoin, Ltd. was incorporated in Delaware but not registered with any official exchange or federal commodity bureaus.

Accused of breaking the law ...

Lavrov and Verstig also founded another firm, ParagonCoin, Ltd., located in Gibraltar..

Both firms acted as one promoting ParagonCoin (PRG), a proprietary token As the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More.

The first time the founders of ParagonCoin were able to achieve incredible success, when investors made a profit of + 4234.04% thanks to the expansion of the cannabis legislation in the United States.

However, almost immediately after the intervention from the SEC, the RPG token lost almost all of its value, falling to $ 0.

Paragon Coin investors believe Paragon Coin founders left the US due to bankruptcy in order to avoid possible prosecution.

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