US court issues final judgment against Paragon Coin founders and promoters.

A United States district court for the Northern District of California has ordered the founders, executives and promoters of the cryptocurrency startup Paragon to reimburse investors more than $12.1 million, with interest.

The conclusion of the Paragon Coin saga. Final judgment for $12M for securities fraud against all founders and even the rapper «The Game» who promoted the coin. This is in addition to SEC fines. A learning lesson for everybody in the space. pic.twitter.com/wuRcMSMFPl

— Pavel Pogodin, Esq. (@ppogodin) July 21, 2021

According to the case materials, Paragon deceived thousands of American citizens who purchased PRG tokens during the 2017 ICO. The startup later filed for bankruptcy, and the obligations to investors were not fulfilled.

The ruling also extended to the rapper The Game, who promoted the coin. The court found that all defendants bear joint liability to the plaintiffs.

Earlier, the crypto startup Paragon planned to issue the PRG token as a digital currency for the cannabis industry.

The first lawsuit against the company, alleging the sale of unregistered securities, was filed in January 2018 by a group of U.S. investors. In February of the same year, under pressure from the SEC, Paragon agreed to register the tokens as securities. The startup was also fined $250,000.

In June 2020, a federal court in California granted a motion to have the case heard at the federal level.

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