The Game, rapper, has been slapped with a lawsuit for promoting a Cannabis-focused crypto company called Paragon Coin. The Blast, reportedly, obtained court documents related to the case, which mention “unspecified damages” that could likely be worth several million dollars.
What Does the Suit Demand?
The plaintiffs moved to court in January for a class action lawsuit against Paragon Coin, but an amended complaint was filed on June 22. The plaintiffs also added The Game as a defendant in the case as he was promoting the cryptocurrency.
The lawsuit considered both the defendant parties’ actions as violations of the law and placed an injunction on both, an order for the recession of the plaintiffs’ investments and accounting of all funds that entered the company.
What Went Wrong With Paragon Coin?
The lawsuit claims that the company fraudulently advertised as a revolutionary business that creates a “path towards legalization of cannabis and a way to solve nearly every issue facing the cannabis industry.” The cannabis-crypto company also claimed to:
“Track every stage of cannabis cultivation, from the purchasing of seeds all the way down the line to the dispensary selling the final product to consumers.”
Investors in the company suggest that their money was not used for creating a blockchain or a cryptocurrency. Instead, the company execs bought real estate with the collected funds.
The Game is listed as a member of the company’s advisory board. His name has been added to the suit as he used his influence and fame to advertise the Paragon ICO, thus making him liable to pay for the damages. The rapper shared several pictures on his social media accounts promoting the company’s ICO last fall. He also posted regularly on his Twitter and other social media accounts.
One of the tweets read:
“Preparing a cannabis revolution with blockchain. @JessVerSteeg and I will tell you more about our upcoming ICO on August 15th @paragoncoin”
The rapper lost a $20 million sexual assault suit against Viacom earlier this month.
