Court Bans Startup That Counterfeited SEC’s Seal
The California court temporarily banned the activities of a crypto company called Blockvest, as follows from an official report. The preliminary injunction was imposed on the project founder Reginald Buddy Ringgold, III, who illegally used the seals similar to the SEC's ones and provided false information about obtaining a regulatory license.
The court ruled that the entrepreneur already violated a number of laws regarding securities, and decided to prevent such violations in the future. Therefore, Gonzalo Curiel, the district judge, issued a ban on the firm and its owner, satisfying the claim of the SEC.
It is noted that the startup was going to make a profit from an ICO, the reputation of which was based on false interpretations about the company’s legal status.
In particular, Blockvest was hiding behind the approval from a non-existent agency, Blockchain Exchange Commission. For this venture, the startup fabricated the seals that much reminded the SEC’s logos and indicated the address of the real regulator’s headquarters.
Also, Ringgold falsely claimed about Blockvest's partnership with a reputable auditor, the National Futures Association (NFA). The latter demanded to stop disseminating this information in its official letter, but the defendant ignored the request.
In such a way Blockvest wanted to give investors more confidence in its ICO, which was soon frozen by a court decision. In further proceedings, the court did not recognize the Blockvest tokens as securities so they could not be registered as such.
Previously, a US crypto fraudster was sentenced to 10 years in prison.