Dragonchain (DRGN) Surges 97% After SEC Drops Long-Running Lawsuit

Dragonchain’s DRGN token has seen a stunning surge of nearly 100% over the past 24 hours, after the U.S. Securities and Exchange Commission (SEC) announced it would withdraw from a years-long lawsuit against the project for allegedly selling unregistered securities.

According to a legal filing published on April 24, the SEC and Dragonchain have agreed that the case should be dismissed “with prejudice” – a legal move that means the case cannot be re-filed in the future. This is seen as a landmark victory for Dragonchain, as the SEC cited the role of its newly formed Cryptocurrency Task Force as a key factor in its decision to drop the case.

Historic Lawsuit
The SEC first filed suit in August 2022, alleging that Dragonchain and its founder Joseph Roets raised a total of $16.5 million through the issuance of DRGN tokens without registering with the regulator. Specifically, the SEC alleged that $14 million raised through the ICO in 2017 and a further $2.5 million raised in 2019–2022 violated securities laws.

However, the case has been on hold since October 2024 after Dragonchain filed a settlement offer. This development became even more notable when in January of this year, President Donald Trump signed an executive order that reshaped the US approach to digital assets, thereby encouraging the SEC to reconsider crypto-related lawsuits.

A Turning Point Meeting and a Shift in Position
On March 24, Dragonchain met with the SEC’s Crypto Task Force – an organization established shortly after President Trump’s second term in office. During the discussion, Dragonchain emphasized that its blockchain technology is primarily for non-financial applications such as data transparency, identity authentication, and process automation – rather than for financial speculation.

This argument played a key role in the SEC’s decision to change its stance. According to internal memos, the regulator judged that continuing the lawsuit was no longer consistent with its current digital asset management strategy.

DRGN Price Surges – Investors Return
Immediately after the announcement, DRGN price surged strongly, recording an increase of up to 97%, marking two consecutive green candles and breaking the long losing streak since 2021. Although still far from the historical peak in 2018, this recovery has attracted attention from the investor community again.

This event took place in the context of the SEC also withdrawing from major lawsuits against industry names such as Coinbase, Ripple and Gemini. The agency also recently dropped the lawsuit against HEX founder – Richard Heart – after the judge dismissed and the SEC did not file amendments.

Signaling a new era?

For Dragonchain, this is not only a legal victory but also an opportunity to reposition its image and technological mission in the context of the legal environment that is tending to be more open to cryptocurrencies in the US.

The SEC's withdrawal not only strengthens investor confidence in the project, but could also usher in a wave of recovery for long-standing tokens that have struggled in legal battles.