Debra BorchardtDecember 19, 2022
Paragon founders have disappeared in Europe.
Paragon Coin Archives - Green Market Report
Debra BorchardtDecember 19, 2022Debra BorchardtJune 30, 2020
Paragon Coin had big plans to become a cannabis bitcoin company and in a 2017 ICO (initial coin offering) the company raised $70 million. Fast forward to today and the company is facing a class action suit claiming that Paragon violated federal securities laws.
United States District Court Judge Jeffrey White granted the plaintiffs’ motion-in-part on federal claims. Yet, he also denied applications for state-level allegations that were filed by several non-California-based investors.
Paragon Coin originally faced a lawsuit filed against the brand and its owners Jessica VerSteeg and her husband Egor Lavrov for allegedly violating Securities law with regards to the Paragon Initial Coin Offering (ICO).
The lawsuit stated that approximately between August 15, 2017, through October 16, 2017, the defendants raised at least $70 million in digital cryptocurrencies by offering and selling unregistered securities in direct violation of the Securities Act. It also stated that on November 2, 2017, Paragon ICO investors received an email updating them that during the Paragon ICO “crowd sale” they had collected 533 BTC and 8,092 ETH— worth approximately $7.3 million and $10.2 million, respectively, as of January 12, 2018. Unfortunately, these amounts did not include any of the cryptocurrencies they collected during the Paragon ICO “presale.”
Capital For Real Estate
At the time, the plaintiff was upset that some of the money raised was being used to acquire real estate even though it was stated that it would be a goal. In Paragon’s white paper it said, “[t]he lion’s share of the token crowdsale [sic] proceeds will be spent on real-estate acquisition.” The plaintiff expected that its investment would increase in value and now wants to be repaid what was invested. So, how much did Davy invest?
Plaintiff invested in the Paragon ICO on September 21, 2017, September 23, 2017,
September 28, 2017, September 30, 2017, October 3, 2017, and October 15, 2017, by transmitting 0.04095 BTC, 0.03975 BTC, 0.57855 ETH, 0.0231 BTC, 0.03495 BTC, and 0.04579484 BTC, respectively, to Defendants.
Paragon Settles in 2018
Paragon did settle in 2018 when the SEC said that Paragon raised approximately $12 million worth of digital assets to develop and implement its business plan to add blockchain technology to the cannabis industry and work toward legalization of cannabis. The SEC statement wrote that Paragon did not register its ICO pursuant to the federal securities laws, nor did it qualify for an exemption to the registration requirements.
Paragon’s Headaches Continue
Even though Paragon settled with the SEC, the investors are still upset as they apparently haven’t received anything. However, Judge White notes that the lawsuit alludes to the company selling the tokens over the Internet. The judge added, “Plaintiffs concede there may be class members in all 50 states and concede that laws governing the state law claims at issue differ among jurisdictions in such a way that a true conflict exists.”
Cannabis Law Report said that, “While the suit argues that ParagonCoin claimed to have issued PRG from its headquarters in California, Judge White noted that “the ICO giving rise to plaintiffs’ claims and purchases of PRG tokens were conducted over the internet.”
“Plaintiffs concede there may be class members in all 50 states and concede that laws governing the state law claim at issue differ among jurisdictions in such a way that a true conflict exists,” the judge added.
StaffNovember 16, 2018Resolution gives the PRG token and other ICOs a path to full compliance with U.S. securities laws
Los Angeles, CA, November 16, 2018 /AxisWire/ “Paragon is making history! We’re excited to announce an important settlement we’ve been working on for over a year — a very positive agreement with the U.S. Securities and Exchange Commission that will effectively put an end to the uncertainties of the legal status of our PRG tokens,” said Jessica VerSteeg, CEO of Paragon. “Working shoulder to shoulder with an amazing team of lawyers from Schulte Roth & Zabel LLP, as well as an extremely knowledgeable team at the SEC, we have been able to reach this trailblazing deal that we expect will serve as the model for compliance for ICOs going forward.”
Under the terms of the settlement, Paragon will be given the opportunity to pursue registration of the PRG tokens as a class of securities under Section 12(g) of the Securities Exchange Act of 1934 by filing a Form 10, and will also be issuing a claims form allowing certain eligible ICO purchasers to elect to obtain a payment for purchases of PRG tokens before and including October 15, 2017. The settlement also provides for the payment of a monetary penalty to the SEC.
“This resolution with the SEC gives Paragon the path forward to full compliance with the U.S. securities laws and clears the way for Paragon to pursue its vision of bringing transparency and accountability to the cannabis industry through blockchain technology. Paragon is proud that the PRG token is included in today’s action by the SEC and are thereby being granted the opportunity to avail itself of this groundbreaking path forward while continuing to pioneer efforts and to participate in the ever evolving ICO marketplace,” said Ms. VerSteeg, CEO of Paragon. “We believe many purchasers of PRG tokens share our vision of revolutionizing the cannabis industry through blockchain technology, and this action today is an important step in solidifying our compliance and furthering developments of our state-of-the-art cannabis seed-to-sale technology platform and co-working space.”
2018 has been an exciting year for Paragon: we’ve purchased, rebuilt, and launched ParagonSpace—a first-of-its-kind co-working space for cannabis startups in Los Angeles, California, the world’s capital of the “Green Rush.” In the heart of Hollywood, industry leaders are meeting, working, and hosting events to educate, support, and strengthen the community. Over the last few months a variety of companies have become tenants at ParagonSpace, and the energy and excitement generated in this innovation incubator is helping fuel the continuing growth and acceptance of the cannabis industry.
Paragon has also made significant advances in our software solution development. The core elements of ParagonChain are ready, based on smart-contract interaction with the Ethereum blockchain. Soon we’ll begin to roll out user interfaces for different aspects of the supply chain, for both cannabis businesses and consumers. Paragon has entered into agreements with several major cannabis companies who are expected to start using ParagonChain for their day-to-day operations as early as December, including: Dreamfields, Fundanna, Flux, Oakland Distribution, Pearl Pharma, and Mammoth Labs. As for the mobile app, Paragon has launched Phase 1, with the first functionalities including the official PRG wallet and ParagonSpace member portal. As one of the first beta partners to implement Civic Technology’s secure login solutions, you can expect to see official ID verification online by the end of Q4.
Likewise, ParagonAccelerator is picking up speed: it is on the verge of announcing the first “startup” developed through its comprehensive business acceleration program.
This emerging company has joined the co-working space and has been utilizing Paragon’s vast network and internal / external resources, anticipating to officially launch next year. Paragon has been building out a partner network full of platforms, services, media, influencers, brands and products to help members grow and connect across the industry. Additionally, our offering includes marketing and PR support, and helping companies connect with legal and finance teams to navigate through the complications of the cannabis industry. Soon we’ll be announcing how we’re collaborating with other cannabis co-working spaces in the nation to bring members the utmost value by joining our community.
Paragon has been a topic of conversation across the cannabis industry, landing features in some of the top national publications. Q1 brought much anticipation for ParagonSpace with High Times announcing “In the City of Angels, the moment cannabis entrepreneurs have been waiting for is finally here.” The news quickly spread across DOPE, Leafly, and The Hollywood Reporter to name a few. Leading up to the official launch and opening, Paragon was also featured in Inc, Forbes, Bitcoin Magazine and Nasdaq, highlighting the innovation behind our technology developments. Since the official opening of ParagonSpace, and the live NBC airing of the launch event, the company has continued to make waves across both the media and cannabis industry alike. Over the past 6 months, we’ve proudly worked with some of today’s top brands, including MedMen, Daily High Club, Eaze, CannaRegs, CCTV, Merry Jane, DOPE, PROHBTD, Stone Road, Levo Oil, Greenbox Robotics, Lowell Herb Co, Atlas Ediles, Green Helix, and Kiskanu, to name a few. Before the end of Q4, you can expect to see more updates and announcements surrounding Paragon’s partnerships, blockchain seed-to-sale technology, co-working space developments, and overall business expansion.
About Paragon
Paragon seeks to pull the cannabis community from marginalized to mainstream by building blockchain into every step of the cannabis industry and working toward full legalization. Our strength lies in the unique blockchain/cannabis connection that uses smart contracts. We believe in blockchain, and we believe in the benefits of cannabis. More uses of cannabis are coming to light, and we want to accelerate that process. We believe cannabis is good for individuals and good for countries. We are passionate about moving forward in an ethical, morally responsible, and legal way. To learn more about Paragon, visit https://paragoncoin.com/ or follow us at https://twitter.com/paragoncoin.
Forward Looking Statements
This press release contains forward-looking statements of the Company that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this press release are forward-looking statements. Forward looking statements can be identified by the use of the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions. The forward-looking statements in this press release represent the Company’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. However, while it may elect to update these forward-looking statements at some point in the future, it has no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the Company’s views as of any date subsequent to the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
StaffNovember 16, 2018
Cannabis office space connects industry leaders while providing resources to grow businesses and further the legal industry.
LOS ANGELES, CA – November 16th, 2018 /AxisWire/Paragon, the leading blockchain technology platform focused on bringing transparency to the cannabis industry, has experienced a warm LA welcome since launching California’s first cannabis co-working space two months ago. With multiple companies working out of ParagonSpace as well as a full event schedule, the team has been busy working to help unite and educate the cannabis community.
The first event at ParagonSpace was the “Eat Yo Veggies” comedy night hosted by Abby Roberge. The sold–out show featured The Lucas Brothers, Morgan Jay, Ashley Barnhill, and Jamar Neighbors. Guests were treated to goodies provided by Green Helix and Fero. Shortly after, ParagonSpace hosted Daily High Club’s charitable Halloween event benefiting Dana Farmer Cancer Institute. The event attracted over 200 attendees including influencers Koala Puffs, MacDizzle, Queen Cyn, and SilencedHippie.
Southern California Cannabis Banking Investment Group has held recurring events at ParagonSpace that include investor brunches and presentations focused on tech, cannabis and investment. Additionally, Blunt Talks hosted their Ted Talk inspired presentations with speakers including Sherbinskis, Sam Zartoshty, Camie Cutter, Raj Chauhan and Paragon CEO Jessica VerSteeg. Blunt Talks featured local brands including Lizzy Tish Cookies, Soko, Rove, Wild Roots, Sonoma Pacific, Lit Club, Grow Studios and VapeXhale. This educational series has proven to be a valuable resource for the community.
Aligned with the opening of ParagonSpace is the phase 1 launch of the Paragon mobile App. Within the app users can access their PRG wallet to send and receive funds, and manage their ParagonSpace memberships. Whether you’re looking to book an office, conference room, or check out upcoming events, anyone is welcome to sign-up and become a Paragonian. Stay tuned for our upcoming developments, including the secure ID verification in partnership with Civic Technologies and updates surrounding the blockchain solution for seed-to-sale tracking.
The Paragon team has welcomed new hires Alice Moon, Brit June, Cami Cutter, and Richard Elena to accommodate the fast growth the company has experienced. Visit the Paragon website to learn more about the team.
Press Contact: Alice Moon // 818-877-5988 // alice@paragoncoin.com
Debra BorchardtFebruary 6, 2018
A lawsuit was filed against cannabis cryptocurrency brand Paragon Coin and its owners Jessica VerSteeg and her husband Egor Lavrov for allegedly violating Securities law with regards to the Paragon Initial Coin Offering (ICO).
The lawsuit states that approximately between August 15, 2017, through October 16, 2017, the defendants raised at least $70 million in digital cryptocurrencies by offering and selling unregistered securities in direct violation of the Securities Act. It also stated that on November 2, 2017, Paragon ICO investors received an email updating them that during the Paragon ICO “crowd sale” they had collected 533 BTC and 8,092 ETH— worth approximately $7.3 million and $10.2 million, respectively, as of January 12, 2018. Unfortunately, these amounts did not include any of the cryptocurrencies they collected during the Paragon ICO “presale.”
The plaintiff Astley Davy states that the offer of the ICO was an unregistered security and cites the use of words like investors and assets as evidence that the ICO was being portrayed as a securities product.
Jessica VerSteeg, CEO of Paragon said, “Paragon is dedicated to staying compliant with all applicable laws, and endeavored to do so throughout the entire ICO process. As U.S. Securities and Exchange Commission Chairman Jay Clayton recently stated, “there are cryptocurrencies that do not appear to be securities,” and whether an initial coin offering implicates the securities laws “depends on the facts.” We are confident that the ParagonCoin token is not a security and can prove so in a court of law. Paragon holds itself to a high standard of compliance with our token holders and will continue to do so as it moves forward.”
Securities And Exchange Commission
The lawsuit states “The SEC advised those using “distributed ledger or blockchain-enabled means for capital raising, to take appropriate steps to ensure compliance” with the federal securities laws, and stated that “[a]ll securities offered and sold in the United States must be registered with the Commission . . .” or qualify for an exemption from registration. On the same day, the SEC issued an investor bulletin urging caution when investing in ICOs and to be mindful that promoters and initial sellers that lead buyers of tokens to expect a return on their investment or participate in shared returns provided by the project may be offering a security for sale.”
Yet, on December 11, 2017, the SEC warned that “investors should understand that to date no initial coin offerings have been registered with the SEC. The SEC also has not to date approved for listing and trading any exchange-traded products (such as ETFs) holding cryptocurrencies or other assets related to cryptocurrencies.[2] If any person today tells you otherwise, be especially wary. ” This is the SEC’s bold-faced type.
Capital For Real Estate
The plaintiff was also upset that some of the money raised was being used to acquire real estate even though it was stated that would be a goal. Yet, in Paragon’s white paper it said, “[t]he lion’s share of the token crowdsale [sic] proceeds will be spent on real-estate acquisition.”
Repayment
The plaintiff expected that its investment would increase in value and now wants to be repaid what was invested. So, how much did Davy invest?
Plaintiff invested in the Paragon ICO on September 21, 2017, September 23, 2017,
September 28, 2017, September 30, 2017, October 3, 2017, and October 15, 2017, by transmitting
0.04095 BTC, 0.03975 BTC, 0.57855 ETH, 0.0231 BTC, 0.03495 BTC, and 0.04579484 BTC,
respectively, to Defendants.
It remains to be seen how much sympathy the judge will feel for the plaintiff losing their bitcoins in a case against fraudulent bitcoin. Check out Bitcoin Era review for additional bitcoin information.
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