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Paragon ICO Scam: Another Cryptocurrency Scam In The Books

Those of you who invested in the Paragon ICO may be feeling the repercussions at the moment, as many are deeming the ICO as a scam. There have been numerous cases filed against the Paragon Coin, stating that, “in connection with the Paragon ICO, which ran from approximately August 15, 2017 through October 16, 2017, Defendants raised at least $70 million in digital cryptocurrencies by offering and selling unregistered securities in direct violation of the Securities Act.” Here’s what we know about the Paragon ICO Scam.

The complaint goes on to state that from August 15, 2017, through September 15, 2017, Defendants ran the Paragon ICO “presale” during which time they purportedly “sold out” of 70,000,000 ParagonCoins (“PRG Tokens”) priced between $0.75 and $0.90 per PRG Token. From September 15, 2017, through October 16, 2017, defendants ran the Paragon ICO “crowd sale,” during which time PRG Tokens were offered and sold for $1 each on the first day and the price thereafter increased by $0.05 per day until the close of the Paragon ICO. Such price increases were clearly designed to entice early investments.

Furthermore, On November 2, 2017, Defendants emailed Paragon ICO investors an update which indicated 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. In this update, Defendants also stated that these amounts did not include any of the cryptocurrencies they collected during the Paragon ICO “presale.” Given that Defendants have represented that the Paragon ICO “presale” sold 70,000,000 PRG Tokens at a minimum price of $0.75,3 and that the Paragon ICO “crowd sale” raised 533 BTC and 8,092 ETH, these representations indicate that Defendants collected at least $70 million during the Paragon ICO.

Paragon’s goal, conveyed in their “mission statement,” is as follows:

Paragon seeks to pull the cannabis community from marginalized to mainstream by building blockchain into every step of the cannabis industry and by 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.

In other words, Defendants marketed the Paragon ICO as offering a path towards legalization of cannabis and a way to solve nearly every issue facing the cannabis industry. As discussed herein, the Paragon ICO was in actuality a way for Defendants to raise capital to purchase real estate.

If you have been affected by the Paragon ICO Scam, please know that you are not alone. We are asking that you reach out to us immediately to share your story and get involved in stopping this scam. We can be reached via Email at ConsiderTheConsumer@gmail.com, or you can find us on TwitterFacebook, or even connect with us directly on our website! We look forward to hearing from all of you, and to finally seek justice for the Paragon ICO investors.

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