A Crypto Startup Founded By Rapper The Game Has Its Registration Revoked

According to the SEC, ParagonCoin Ltd broke securities laws by failing to submit the necessary periodic reports.

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The Securities and Exchange Commission (SEC) of the United States cancelled the registration of a cryptocurrency firm supported by American rapper Jayceon Terrell Taylor, best known by his stage name "The Game," for breaking securities rules and failing to submit required disclosures.

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The SEC withdrew the license of ParagonCoin Ltd, a cryptocurrency corporation that specializes in the marijuana market, after verifying its claims against the company and determining that it is in default. The SEC began legal action against the company in February 2022 and noted that its most recent statement, from March 2019, said that it had lost more than $10 million in 2018.

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The SEC claims that the cryptocurrency company disregarded a delinquency letter on the periodic reports that was sent by an SEC division. The SEC further emphasized that the cryptocurrency startup failed to reply to its order beginning proceedings in February 2022 and failed to respond five months later to present justifications as to why it should not be declared in default.

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In a class-action lawsuit in 2021, Taylor and the executives of the cryptocurrency business were found to be jointly and severally liable for more than $12 million. The firm was accused of breaking the law when it conducted its $70 million initial offering of coins in 2017, according to the lawsuit.

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While The Game failed in the cryptocurrency space, another rapper has begun to take on the role of Web3's spokesperson. The renowned rapper has made numerous Web3 collaboration announcements and was recently identified as the co-founder of the live-streaming platform Shiller, which uses Web3.

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In a music video for their song "From The D 2 The LBC" on June 24, 2022, Snoop Dogg and Eminem also used their Bored Ape Yacht Club nonfungible tokens. The music video occasionally featured both rappers as their animation Bored-Ape-style avatars.