Regulators Freeze ICO That Allegedly Claimed To Obtain SEC Permission
The US Securities and Exchange Commission (SEC), following a judicial procedure, halted an ICO of a company which falsely claimed that it obtained a license from regulators. The firm Blockvest LLC used the SEC logo and seals without any regulator’s permission and violated the federal law, the SEC website informs.
Earlier the Blockvest startup claimed that it was given endorsement of several authorities, the SEC among them, to conduct its ICO campaign. As the US regulator stated in the complaint, the firm's founder, Reginald Buddy Ringgold, III, illegally used the Commission's seal and provided falsified information about having a corresponding license.
Ringgold acted under the guise of a non-existent authority Blockchain Exchange Commission, for which he fabricated a logo similar to the SEC’s one, and provided the address of the regulator’s headquarters.
Moreover, the defendant falsely stated about Blockvest's connections with a reputable accounting company — the National Futures Association (NFA). The Association sent Ringgold an official letter demanding to cease the illegal use of its seals, but the suspect ignored the message.
The Commission representative Robert Cohen explained that the startup by acting so tried to convince investors that its initial coin offering was legal. He added that the SEC doesn't support such investment projects, and claims that suggesting otherwise should alert traders.
Blockvest is accused of fraud and violating the federal law on registration of securities. The SEC will seek penalties and compensation, as well as the removal of Reginald Buddy Ringgold, III, from any activity related to securities and digital assets.
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