Several years of legal disputes between the SEC and Dragonchain have come to an end. The U.S. regulatory body agreed to drop the case against the company accused of selling unregistered tokens.
Overview of the Lawsuit Against Dragonchain
The lawsuit against Dragonchain was filed in August 2022. The SEC claimed that the company offered unregistered securities, raising $14 million during the presale and ICO of its DRGN token in 2017. The SEC also stated that the company made an additional $2.5 million from 2019 to 2022 to cover expenses and develop technology.
Changes in SEC's Approach to Cryptocurrencies
In a joint filing submitted to court on April 24, the SEC indicated that the dismissal of the case was 'appropriate.' This is related to the work of the newly formed Crypto Task Force and a shift in approach to digital assets. The case was put on hold in October 2024 after Dragonchain made a settlement offer.
Market Reaction to the Dismissal
Following the news of the dismissal, the DRGN token surged by 128% within 24 hours, according to CoinGecko. Although it remains significantly below its all-time high of $5.46 reached in 2018, the spike is seen as a positive signal following months of decline.
The closure of the case against Dragonchain may signal more favorable conditions for companies in the cryptocurrency industry, but it is important to monitor SEC's further actions in the regulation field.
