US Securities and Exchange Commission wins another lawsuit against crypto companies
And again the authority can enforce an ICO in court as illegal.
After several years of litigation with the American regulatory authorities, the Blockvest crypto project has now been finally banned
The SEC is asking for a permanent ban, the repayment of illegally generated funds and fines, ”as a court document on Thursday said. With the verdict that has now been made, this claim has been granted in the sense of the American Securities and Exchange Commission (SEC). Both the Blockvest crypto project and its founder Reginald Buddy Ringgold III, who also calls himself Rasool Abdul Rahim El, are the defendants in this case.
In October 2018, the SEC was the first time against Blockvest intervened when the company selling a proprietary crypto tokens sought. Such an “Initial Coin Offering” (ICO) was a popular method of raising capital in the crypto industry at the time. In the next two years there was a legal dispute between the two sides , which has now ended with the judgment of the day before yesterday.
The reason for the injunction with which the SEC intervened against the ICO at the time, and which was the basis of the ongoing legal dispute, is that, according to the authorities, both Blockvest and Ringgold deliberately acted illegally. Nonetheless, the ICO was carried out and its illegality was deliberately covered up by Ringgold falsely claiming to have registered the token sale with the SEC:
„The defendants pretended that the Initial Coin Offering was ‚registered‘ and ‚approved‘ by the SEC, using the SEC logo for this deception.“
In addition, the defendants had falsely claimed that the ICO was approved by the American Futures and Options Trading Authority (CFTC) and the American Association for Futures Trading (NFA).
In addition, other charges are mentioned in the latest court document, for example:
„The invention of a fictitious supervisory authority called the Blockchain Exchange Commission (BEC), including its own fake logo, fake seal and fake regulatory mandate, all of which are similar to the logo, seal and regulatory mandate of the SEC.“
As a result of the ruling, Blockvest and Ringgold were imposed various fines, including making compensation payments to the investors in the token sale and fines totaling USD 696,097.90. Furthermore, various restrictions and prohibitions apply to entrepreneurs and founders with immediate effect.