Victor Ugochukwu · Oct 22, 2020 . 5min read
Lawsuit Filed against Cannabis’s Jessica VerSteeg Owing to Paragon Token Sale
Paragon Coin token sale's investors are demanding their money back, but they can't find the VerSteeg and Lavrov.
By Komal Joshi · Aug 21, 2020 . 7min read
According to a recent news, investors aim to claim the amount invested in the Paragon token sale. Paragon is a name for the cannabis company established by entrepreneur Jessica VerSteeg. It is based on blockchain technology and its reliable data. VerSteeg’s passion led to the development of Paragon owing to perfect the seed-to-sale process of the marijuana trade. The cannabis industry’s version of Bitcoin, Paragon coin helps budding entrepreneurs manoeuvre around the banking system. Additionally, it also sustains Paragon’s internal ecosystem.
Paragon Coin held its token sale in 2017. Investors are demanding their money back, but they can’t find the VerSteeg and Lavrov. They were behind the management of the project. “The attorneys representing the defendants have withdrawn as counsel,” said attorney Donald Enright. He represents plaintiffs in this crypto-fueled legal dispute. Enright further noted that the defendants “defaulted” by failing to appear in court and responding to them.
Paragon raised $70 million through its ICO in 2018. However, investors filed a lawsuit alleging Paragon failed to register the offering with regulators. VerSteeg said that the company is committed to complying with the law and attempted to do so throughout the ICO process.
Jessica VerSteeg, the 30-year-old Dutch-Puerto Rican model and former Miss Iowa beauty queen, and her husband, Russian entrepreneur Egor Lavrov, managed the project collectively. The defendants listed in court documents include Jayceon Terrell Taylor, Eugene Bogorad, Alex Emelichev, Gareth Rhodes, and Vadym Kurylovich.
Analyzing the Comprehensive Details of Token Sale’s Lawsuit
The Northern District of California concluded in the infamous ICO (initial token offering) case Davy v. Paragon Coin, Inc. that the token buyers seeking to claim the project’s founders may qualify as a class to pursue a collective matter. The lawsuit further states that the token sale was an illegal securities offering. Additionally, buyers are authorized to refund their investment or compensatory damages.
Enright said details about the Northern District of California’s hearing. He added that the case doesn’t conclude yet. “Once we have the class certified, we will then seek default judgment on behalf of the entire class for all of their damages,” he said, “for the Paragon ICO’s full value.” According to the litigation filings from the U.S. Securities and Exchange Commission (SEC), Paragon raised approximately $12 million in digital assets during the token sale.
“Paragon offers everything from a cryptocurrency (ParagonCoin, traded as PRG) to a blockchain solution (ParagonChain) designed to expedite and digitize the marijuana supply chain,” a Forbes contributor wrote in July 2018. “Now, VerSteeg’s latest venture is Paragon Space, Los Angeles’ first cannabis co-working space set to open on September 1.”
One of Paragon’s early contributors said he’s not bothered about future lawsuits. The contributor further elaborates that the team already obeyed the SEC by settling a penalty fee. Nobody has heard of VerSteeg and Lavrov since the past one year. Thus, if the class-action lawsuit proceeds, it’s uncertain how the courts will find VerSteeg and Lavrov.
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Komal Joshi · Oct 22, 2020 . 5min read