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Paragon Coin Class Action Lawsuit Poised to Move Forward

Paragon Coin, and its affiliated initial coin offering, is pretty emblematic of the ICO heyday when any token could raise money based largely on a white-paper and effective marketing campaign. While it is hard to accurately discern, Paragon issued the PRG token raising around $12 million dollars, according to some reports, to create a Cannabis payment platform and real estate investment firm. Today, that same PRG token actually trades (it seems) at around $0.0028. Really, less than zero. At one point, PRG spiked to a market cap of over $350 million in a clear pump ploy.

Paragon benefited by the effective marketing of co-founder and CEO Jessica Versteeg, a former model and once Miss Iowa. Her husband, Egor Lavrov, was part of the project but Versteeg was the highly visible face of the firm.

As with most all post-DAO SEC statement ICOs, Paragon was the target of a Securities and Exchange Commission (SEC) enforcement action due to its claim that PRG was an unregistered security.

In brief, Paragon was required to return all funds raised to impacted investors while paying a fine for its transgressions. Lavrov described the settlement as “making history” as he attempted to put a positive spin on the outcome. It appears that Paragon Coin started the refund process but what is not clear is whether any money was returned from the ICO.

To Read The Rest Of This Article By JD Alois on CrowdFund Insider

Published: August 19, 2020

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