- A cryptocurrency project looking to transform the pot industry with blockchain is facing a lawsuit, according to a Bloomberg Law report.
- The suit claims that the offering was not registered with authorities and that investors want their money back.
- Paragon first drew attention to its initial coin offering when it got the celebrity endorsement of rapper the Game.
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A crypto company touted by rapper The Game just got hit with a lawsuit from investors who want their money back
A cryptocurrency project looking to transform the pot industry with blockchain got hit with a class action lawsuit, according to a Bloomberg Law report.
A cryptocurrency company looking to use blockchain technology to transform the pot industry has been hit with a lawsuit, according to a Bloomberg Law report.
Paragon, the blockchain company founded by former Miss Iowa Jessica
A media contact who represented Versteeg in August did not immediately respond to Business Insider's request for comment.
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When Business Insider first reported on Paragon in August prior to its ICO, Versteeg said the
Celebrities such as rapper The Game drew attention to the ICO when they endorsed it over social media.
Regulators have been paying closer attention to the ICO market, which is known for its fair share or big dreams and fraud.
In December, SEC Chairman Jay Clayton had harsh words for ICOs after the agency shut down an offering. Clayton said in a blog post that despite claims of not being subject to regulation, many of the digital coins were in fact securities and thus subject to the agency’s authority.
The regulator's concern is that ICOs provide a way for companies to solicit money from small-time investors without properly disclosing risk.
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Graham Rapier contributed reporting.
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