Paragon
Among the first ICOs penalised by the SEC; its token registration was revoked
A California startup that sold PRG tokens in 2017 to build blockchain payments, supply-chain tracking and a co-working space for the legal cannabis industry.
- Capital raised (announced)
Recorded announced backing; this is separate from cash received, customer deposits and money recovered.
Funding
| Round | Date | Announced | Investors |
|---|---|---|---|
| PRG token presale and crowdsale (2017) | 2017 | Not disclosed |
Announced is what was said at the time. Cash actually received is rarely disclosed and is not assumed to match.
People
| Name | Role | Period | Now | Last checked |
|---|---|---|---|---|
| Jessica VerSteeg | — | Not established | Oct 2026 | |
| Egor Lavrov | — | Not established | Oct 2026 |
Promises vs reality
Commitment · target Sep 2018
In March 2019 the company told the SEC the property bought for the space was under contract for sale and that it did not intend to develop other properties.
A missed promise is a missed promise. It is not evidence of fraud, and this page does not treat it as any.
Timeline
18 August 2017
Tokens were to be used between growers, suppliers and dispensaries, and to pay for space in a planned co-working hub.
16 November 2018
One of the SEC's first two cases imposing penalties solely for an unregistered token offering, announced the same day as Airfox's. Paragon agreed to offer refunds to buyers, register PRG as a security, file periodic reports and pay a $250,000 penalty.
29 March 2019
Its first and only registration filing. The company did not answer the SEC's follow-up questions or amend it.
April 2020
How it ended
In April 2020 Paragon announced on its website that it was filing for bankruptcy. It said its plans had been impossible to achieve because of legal mistakes, that the lawyers it relied on had failed it, and that most of its resources had gone to legal battles and compliance requirements.
What happened next
- LawsuitAugust 2020
In Davy v. Paragon Coin, Inc., in the US District Court for the Northern District of California, the court decided that token buyers may qualify as a class. The suit claims the sale was an unregistered securities offering. Plaintiffs' counsel said the defendants' lawyers had withdrawn and the defendants had defaulted by not appearing.
- Regulatory action9 April 2021
The SEC began distributing the $175,000 Paragon had paid toward its $250,000 penalty to token buyers through a fair fund.
- Regulatory actionFebruary 2022
The SEC said Paragon's last periodic filing dated from March 2019.
- Regulatory action9 March 2023
The SEC found Paragon in default after it did not respond to the proceedings or to an order to show cause, and revoked the registration of its securities.
Still alive
Open spot
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Sources
11 sources behind this page.
- 1SEC Revokes License of ParagonCoin Crypto Startup · Blockchain.News
- 2A Former Beauty Queen Raised $12M to 'Revolutionize' Cannabis. The Courts Can't Find Her · CoinDesk · Aug 2020
- 3SEC Settles Securities Registration Charges Against 2 ICO Startups · CoinDesk · Nov 2018
- 4SEC-Fined Crypto Project Abandons Cannabis Co-Working Venture · CoinDesk · Apr 2019
- 5ParagonCoin registration in US revoked over securities laws violation · CoinGeek · Mar 2023
- 6Paragon (PRG) price and listing · CoinMarketCap · user-editable
- 7Cannabis Crypto: Paragon Coin Class Action Lawsuit Poised To Move Forward · Crowdfund Insider · Aug 2020
- 8Shitcoin Surprise: SEC Hands Paragon And AirToken Investors A Mulligan · Crypto Briefing · Nov 2018
- 9Investors in Paragon's $12 Million Cannabis Crypto ICO Will Finally Get Some Money Back · Decrypt · Apr 2021
- 10Beauty Queen Turned Cannabis Entrepreneur Launches Blockchain Startup · International Business Times · Aug 2017
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- 11Lessons from Crypto Projects' Failed Attempts to Register with the SEC · Paradigm · Mar 2023
Every figure above is clickable and opens the sources behind it. Copies were stored when each source was read, so a citation still resolves after the page it came from is gone.