Blockvest LLC has been sued by the United States Securities and Exchange Commission (SEC) on charges of false claims of approval from the government body. Notably, Blockvest progenitor Reginald Buddy Ringgold III has also been sued in this incident.
Based on the information received by a press release on SEC’s website, the regulator stopped Blockvest’s planned ICO and ongoing pre-ICO sales. This was made possible using an emergency court order from a United States District Court.
The SEC is suing Blockvest LLC and the affiliated bodies for false claims about gaining approval from SEC and other regulatory bodies in the US. The ICO has reportedly used the seal of approval without permission which is a direct violation of federal laws of the state. Furthermore, the ICO was also marketing its ICO by showing its affiliation with a major accounting firm.
The order was issued by a Judge in the U.S. District Court for the Southern District of California. This resulted in Ringgold and his company’s assets being frozen. The hearing for the court is scheduled for October. This hearing will investigate the investigations and will provide a decision for issuing a preliminary injunction against the convict and his company.
Following such incidents, the SEC’s Office of Investor Education and Advocacy along with the U.S Commodity Futures Trading Commissions Office of Customer Education and Outreach have issued a warning for investors to help them identify such false claims.
The financial regulators across the world have a negative outlook towards ICOs. They see them as a tool that companies are suing for money laundering and fraud. The United States government has enforced strict rules to regulate fundraising through ICOs. An increasing number of ICOs have shown their inclination towards complying with these regulations.