US Regulators Sue ICO Company That Falsely Claimed SEC Approval
The U. S. Securities and Exchange Commission (SEC) has affirmed today, October 11, that it has secured an emergy court order against BlockVest and its CEO Reginald Ringgold on accusations of claiming that the Initial Coin Offering (ICO) announced by the company was regulated by the SEC when it clearly was not.
According to the official statement from the agency, the CEO has claimed to investors that the ICO had been greenlighted by the SEC, which ws not true. Therefore, they would be violating the federal law as they falsely claimed that the crypto fund was licensed and regulated by the entity. The company lied that it received a “Reg A+ approval” from the SEC while selling its BLV tokens.
The document affirms that the man, also known as Rasool Abdul Rahim El, was using the SEC seal without proper permission. He also used a fake agency called “Blockchain Exchange Commission”, which used a similar graphic seal to address the regulation concerns of the investors.
Even after the National Futures Association (NFA) has contacted the firm and sent a cease and desist letter, they continued to use the NFA’s seal, as well as misrepresent a well-known accounting firm.
Company Had Its Assets Frozen
The U. S. District Court of the Southern District of California, by the hand of the judge Gonzalo Curiel, decided to freeze the assets of the defendants and other emergency relief until further notice while the company is investigated. Also, the company is prohibited from violating the antifraud provisions and securities law. The hearing is now scheduled for October 18 and the assets will be frozen until then.
Robert A. Cohen, the Chief of the SEC Enforcement Division’s Cyber Unit, has affirmed that the company was using the SEC’s seal in order to fool investors and trick them into giving money for the fraudulent company despite the SEC not endorsing the project in any way.
The investigation is currently being conducted by David S. Brown and Brent W. Wilner under the supervision of Diana K. Tani and Joseph G. Sanstone.