If any firm or individual or celebrity is keen to take advantage of the cryptocurrency market and the sentiments, then they could also land in trouble. This was quite evident when the Game is dragged into the class-action suit for helping to promote the crypto brand. That is because it was cited as a way towards cannabis legalization apart from solving a number of issues that are being faced by the industry. In a nutshell, the Game is only paying the price for his own action.
The Game is facing the multi-million dollar suit in a case relating to digital coin business that is known as ParagonCoins, complex.com reported. What has irked the plaintiff is the false claim that will change the weed industry completely. The company has claimed itself of engaging in tracking cannabis cultivation at every stage. This included right from the seeds purchase to the complete path to the dispensary of selling the end product to consumers. However, it turned out to be a ruse, and there was no truth in it.
Another claim made by the lawsuit is that Paragon has utilized the fund that it raised from investors for different purposes. One among them is to revolutionize the cannabis industry while the other is to acquire real estate assets. The deviation has forced the plaintiffs to sue the digital coin business venture from misleading its investors. In fact, this is one of the issues that have been raised consistently by regulators for tightening the noose around the emerging Initial Coin Offerings (ICOs) or the virtual assets.
The company’s advisory board has listed the Game as a member. Another charge made by the suitor is that the rapper has utilized his fame fully enabling it to advertise on behalf of the digital coin apart from the ICO. As a result, he was brought in to make him liable for misguiding investors, who have reposed faith in him.
During the fall season, the Game has engaged himself in sharing a number posts in social media. This included his posts with Paragon CEO, Jessica Versteeg, to promote the firm and the ICO. One of the posts indicated the preparedness of a revolution in cannabis with blockchain with more to come about the ICO on August 15 last year.
Damages Not Specified
Significantly, the plaintiffs have not specified the damage claim either from the Game or Paragon. However, the suitor wants an order from the court declaring that the company, as well as, its executives were involved in breaking the law of the land. Aside from that, the plaintiffs sought an order from the court to stop the firm on funds usage.
The suitor is obviously keen to ensure that the company should not engage in itself in either using or transferring the remaining funds that it raised so that investors could be repaid. Though the original suit was filed in January, the name of the Game was brought in only on June 22. In any case, the suit is the most recent one for the Game.