Popular American rapper The Game faces $12 million charges for promoting unregistered ICO Paragon

By Selena On Jun 26, 2021

Popular American rapper and actor Jayceon Terrell Taylor popularly known as The Game is currently facing a $12 million fraud allegation from promoting Paragon, an unregistered ICO that raised capital from investors in 2017.

The project’s director, former Miss Iowa, Jessica VerSteeg linked up with the rapper the Game. The duo appeared on each other’s social media accounts on numerous occasions to promote the project. The final cross-promotion occurred on the day of the Paragon ICO launch with the Game appearing on VerSteeg’s Twitter feed to encourage investors to participate in the fundraising event. These actions would eventually lead to the Game joining in Paragon’s legal woes.

The SEC ordered Paragon and its executives to refund all of their investors

According to an official filing from Law360, Terrell Taylor promoted the unregistered token sale of Paragon Coin, a tech company that came under regulatory scrutiny in early 2017.

Paragon touted itself as a cryptocurrency company that would use the power of blockchain technology to promote the cannabis industry. To drive market interest, the company recruited the American rapper, who publicly advertised the PRG token on its social media handles.

Standing with Paragon’s, The Game said in a tweet back in 2017 that Paragon was preparing to revolutionize cannabis and the world.

Source: The Game/Twitter

Between April 15 and October 15, 2017, the Paragon ICO was wildly successful, raising a total of $70 million from investors. And then, in 2018, an investor in the company, Astely Davy filed a lawsuit against Paragon for conducting an unregistered securities sale, insisting that the company should be forced to refund the participants. ICO because it is not registered with the SEC.

After filing, the SEC asked Paragon and its executives to refund all their investors because the project did not comply with federal securities laws in the US.

The Game’s involvement remained unproven at first, which is why he was not prosecuted. However, in light of recent events, the United States Federal District Judge Jeffrey S. White revealed in the amended complaint that the court had received ample incriminating evidence against him.

According to Judge, this rapper acted in his own interest or for the sake of Paragon, so he is still considered a member of the project. Furthermore, The Game also now has the liability to the company and its executives for $12 million prejudgments and post-judgment interest.

Although the use of ICOs by crypto projects to raise funds has been gradually phased out, US regulators continue to hunt for projects and celebrities who conducted or promoted unregistered ICOs. signed from 2017 to 2018.

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