Before you go thinking that Dracula was from Kentucky, remember the difference between a Kentucky accent and Romanian. This American Transylvania was started by a man named Richard Henderson who owned the North Carolina based Transylvania Company.
The company reached an agreement with the native Cherokee in Kentucky to buy the land in the “Treaty of Sycamore Shoals.” The area was half the size of present-day Kentucky. The men hoped to establish their own British proprietary colony, unfortunately when making the deal with the Cherokee, the men of the Transylvania Company didn't realize that they would be encroaching on territory claimed by both Virginia and North Carolina.
They weren't just encroaching, but actually violating Virginia, North Carolina and British laws. They didn't realize this and settled anyway. Henderson tried to get the colony officially recognized, but was denied and the colony dissolved. As compensation, however, they were given about 12 square miles in the area below the Ohio River.