SEC Dismisses Case Against Dragonchain

A Victory for Innovation

In a historic moment for blockchain innovation, the U.S. Securities and Exchange Commission (SEC) has officially dismissed its case against Dragonchain, putting an end to a seven-year-long legal battle that threatened the progress of blockchain and decentralization technology in the United States. This dismissal, with prejudice, ensures that the SEC cannot pursue the same claims again, marking a definitive victory for Dragonchain and the broader blockchain community.

For Dragonchain, this outcome is more than just legal relief—it is a resounding affirmation that its approach to blockchain technology, tokenization, and utility was always on solid ground. With the weight of litigation lifted, Dragonchain is now free to advance its vision of secure, scalable, and decentralized blockchain solutions without regulatory uncertainty.

This ruling also sets an important precedent for the industry, signaling that blockchain projects designed as utility-based ecosystems—rather than speculative investments—can and should be recognized for their technological merit rather than being misclassified under outdated securities law.

The Case: A History of the Battle

The SEC first launched its investigation into Dragonchain in February 2018, later filing a formal complaint in 2022. The case revolved around whether the DRGN token, which was introduced in 2017, constituted an unregistered security. Dragonchain maintained from the beginning that DRGN is not a security but a software license token used for access to blockchain-based services.

The legal battle was both costly and time-consuming, with Dragonchain sacrificing millions in legal defense. The dismissal of this case not only clears Dragonchain's name but also marks the first time the SEC has dropped a case against a blockchain token in this manner—a watershed moment for the entire crypto industry.

Dragonchain endured a costly and prolonged legal standoff with the SEC, sacrificing millions in defense of its innovative platform and token model. The recent motion by the SEC to voluntarily dismiss the case against Dragonchain marks an unprecedented moment in crypto history and signals a turning point not only for Dragonchain, but for the broader industry’s fight for clarity and fairness in regulation.

The final dismissal came on April 24th, 2025, a date that will undoubtedly be remembered as a milestone in the fight for fair blockchain regulation.

Dragonchain: America’s Blockchain

Dragonchain’s journey began inside Disney in 2014, where it was originally developed as a private blockchain platform for enterprise use. After proving its effectiveness and flexibility in real-world applications, it was open-sourced in 2016, allowing developers worldwide to build on its unique hybrid blockchain architecture.

Joe Roets, Dragonchain’s founder and Chief Architect, is a seasoned software architect who has worked with organizations such as Disney, Lockheed Martin, the DoD, the FBI, and Coinbase. His deep understanding of security and enterprise solutions led to Dragonchain’s patented approach to scalable, hybrid blockchain networks.

Unlike traditional blockchains, which force users to choose between privacy and decentralization, Dragonchain allows businesses to keep sensitive data private while still securing transactions on public blockchains like Bitcoin and Ethereum.

Dragonchain’s Real-World Impact

Despite the legal battle, Dragonchain continued to build and serve real-world customers, proving its resilience and technological superiority.

Some of its most prominent applications include:

• Den.Social – A decentralized social media platform that uses blockchain to reward content creators and eliminate centralized censorship.

• DEXX – A tokenized fine art and asset exchange, allowing fractional ownership of high-value assets.

• Drakaria – A next-gen blockchain gaming platform using provably fair and verifiable game mechanics.

• WBRT (World Blockchain Round Table) – The first-ever DAO-based podcast, where viewers directly govern content and rewards.

• Eternal – Free utility to place any information on chain.

These use cases demonstrate that Dragonchain is not just theory—it is a functional and widely adopted blockchain utility platform that is already solving real-world challenges.

By the Numbers: Dragonchain Statistics

Despite facing an SEC lawsuit, Dragonchain has continued to operate, innovate, and grow. The numbers speak for themselves. More than 532 million utility transactions have been executed by thousands of DRGN token users and over 3,200 organizations. All transactions are secured across multiple public blockchains, including Bitcoin and Ethereum. This showcases Dragonchain’s proven utility, resilience, and reliability as a robust blockchain platform. The network operates with a fully decentralized verification system, ensuring data integrity through multiple independent nodes. Additionally, hundreds of DAOs and governance systems are utilizing Dragonchain for transparent decision-making.

Dragonchain’s ecosystem includes a strong and diverse community of over 39,000 DRGN token holders worldwide. These holders utilize DRGN as a utility token rather than a speculative asset, leveraging it to access Dragonchain’s blockchain services.

Dragonchain’s enterprise-first focus and patented security architecture sets it apart as one of the most innovative blockchain projects in the U.S.

The DRGN Token and Sale Model

A major factor in the SEC’s case was the classification of the DRGN token. Unlike speculative investment tokens, DRGN was modeled as a Tokenized Micro-License (TML) for accessing Dragonchain’s blockchain services​. This token model fundamentally differs from typical cryptocurrencies and redefines how blockchain-based licensing can work.

The patented TML model allows DRGN tokens to function as software licenses rather than securities. Users hold DRGN as a balance and utilize them over time to access various services on the Dragonchain platform. 

Dragonchain conducted its token sale in October 2017, exactly one year after Disney open-sourced the original Dragonchain project​. Unlike typical ICOs at that time, which often encouraged speculative investment, Dragonchain designed its sale model to prioritize fairness and accessibility.

Instead of setting a fixed price, the sale was structured so that every participant received DRGN at the exact same price regardless of when they joined. This approach eliminated issues of early investor advantages and price manipulation. The sale ran for an entire month (October 2 – November 2, 2017), allowing people new to blockchain to participate without rushing into a decision.

Dragonchain allocated 55% of the total token supply (433,494,437 DRGN) for the sale, with the remaining tokens reserved for the project’s development, partnerships, and ecosystem growth.

Dragonchain’s approach to blockchain monetization has now been vindicated, proving that tokens can be structured legally and ethically without being unfairly classified as securities.

Dragonchain Innovations and Firsts

Dragonchain has pioneered multiple advancements in blockchain technology that have the potential to reshape industries worldwide. With the SEC case dismissed, Dragonchain is now positioned to advance these innovations and drive the adoption of scalable, secure, and interoperable blockchain solutions across industries.

• Interchain: Dragonchain’s groundbreaking interoperability system connects businesses and applications to multiple blockchains, including Bitcoin, Ethereum, and any other blockchain desired. By enabling seamless interaction between different blockchain networks, Interchain ensures security, flexibility, and efficiency in a way that no other platform has achieved.

• Measurable Proof: A patented system that provides verifiable data integrity, ensuring trust and accountability in business processes, supply chains, and digital interactions. This innovation sets a new standard for proving the authenticity of data without revealing sensitive information.

• TIME-Based Scalability: Dragonchain leverages the passage of time as a staking mechanism, allowing businesses to scale transaction capacity predictably. Unlike traditional blockchain networks that suffer from congestion and fluctuating fees, TIME-based scalability ensures stable and deterministic costs for enterprises.

• Enterprise Smart Contract Orchestration: Unlike rigid smart contracts on other platforms, Dragonchain enables businesses to modify, update, or replace smart contract workflows without disrupting operations. This flexible approach allows enterprises to adapt blockchain applications to evolving business needs.

• Multi-Language Smart Contracts: Developers can write smart contracts in familiar programming languages such as Python, JavaScript, and C#, rather than being forced to use proprietary blockchain languages. This lowers the barrier to blockchain adoption for businesses and developers worldwide.

• Provably Fair Selection and System Entropy: Dragonchain ensures transparent, verifiable randomness for applications such as gaming, lotteries, and secure voting systems. This technology guarantees that outcomes cannot be manipulated, fostering trust in decentralized applications.

• Smart Contract Gated Data Access: A critical feature for enterprise security, this system allows access to sensitive data only under specific, blockchain-verified conditions. This is particularly important for industries requiring regulatory compliance, such as healthcare, finance, and government operations.

These innovations position Dragonchain as a leader in blockchain technology, offering secure, scalable, and enterprise-ready solutions that extend beyond the capabilities of traditional blockchain networks.

What’s Next for Dragonchain?

With the legal war behind us, Dragonchain is unleashed—free to build, scale, and ignite a new era of decentralized innovation.

Here’s what’s coming:

• Tokenizing Dragonchain’s patent portfolio—unlocking provable intellectual property as a new class of on-chain asset

• Drakaria platform launch—fully articulated 3D dragons with verifiably unpredictable genomes derived from multi-chain entropy—encoding 58 heritable traits across billions of deterministic yet uncopiable possibilities

• ASYLUM—a meme-fueled token playground built for chaos, culture, and fun

• Expansion of Eternal.report—bringing next-gen proof and permanence to journalism, transparency, and digital rights

• Reimagining Den.social as DePLATFORM—a censorship-resistant platform tokenized channel ownership

• Partnering with DEXX—bridging tokenized real-world systems and assets into living, liquid ecosystems

• Launching Humane Intelligence—behavioral tech as a transparent, human-first alternative to black-box AI, with working products and open documentation

• Reviving the Dragonchain Incubator—empowering a new generation of builders to create their vision on Dragonchain

This isn’t just a next chapter—it’s a signal. 

The future of blockchain is being rebuilt—on our terms.

A Word of Thanks

This victory was not won alone. It stands on the tireless efforts of our legal champions—David Otto, John Deaton, and Greg Lang—whose resolve matched the weight of the moment.

To the Dragonchain community, to our Lucius Probator Aeternus, and every voice who stood with us: your courage, advocacy, and unwavering loyalty lit the path forward. You are etched into this moment forever.

We owe a special debt to the XRP Army, and to President Donald Trump and his Administration—for daring to challenge the status quo and push the world toward something better.

The fight for fair regulation and blockchain innovation is far from over, but today, Dragonchain has won a truly historic battle—one that will inspire countless blockchain projects to stand their ground and push for a freer, fairer, and more innovative digital future. This is a victory for America and the world.

We should therefore recognize the principled leadership and signs of courage from those within the system, striving to correct its course: Chairman Paul Atkins, Commissioner Mark Uyeda, Commissioner Hester Peirce, and a special nod to Jorge Tenreiro for outstanding IT support. May the SEC's Crypto Task Force continue its vital role in turning tides and restoring clarity.

And finally, We extend our sincere thanks to The Walt Disney Company for the trust placed in us to create Dragonchain. Born within your walls, forged in innovation, and inspired by a legacy of imagination and courage — Dragonchain exists because you dared to let us build something new. Thank you for believing in the power of vision, technology, and possibility.

“Around here, however, we don’t look backwards for very long. We keep moving forward—opening up new doors and doing new things—because we’re curious…and curiosity keeps leading us down new paths.” — Walt Disney

We’ve never looked back—and we’re not about to start now.

Keep moving forward—The next chapter of Dragonchain begins now.