US Court eventually issues temporary ban on Blockvest business for sales of unregistered token

Posted 15 February, 2019

On February 14, US District Court for the Southern District of California issued a temporary ban on Blockvest LLC operations charging fraud connected with a securities offering. As a result, the court actually revised its previous decision made in late 2018.

According to the released document, the SEC filed a lawsuit on October 3 2018, in which the regulator noted that the respondents had plans to raise funds via the ICO for several financial products that could bring "passive income" and promised huge profits. Moreover, the company stated during the campaign that they had got the green light from the regulator, though in fact there was no approval received.

"The defendants used the SEC seal without permission and falsely claimed that their crypto fund was "licensed and regulated", the SEC notification reads.

However, the court rejected the claim last November, citing not enough evidence that the BLV token was security in line with the US legislation.

The founder of the company Reginald Buddy Ringgold is also accused of promoting ICO with the help of a non-existent regulatory entity Blockchain Exchange Commission which used a seal resembling the SEC one and marked the SEC head office as its own.

As a result, the court prohibited the defendants to perform any activities involving the fraudulent offering or sale of securities, violating federal securities laws. 

The court concluded that Blockvest company offered unregistered securities and thus it "violated Section 17(a) [of the Securities Act of 1933]." 

Previous story

15 February, 2019 13:38

← Canada-based Coinsquare exchange becomes new owner of StellarX platform

The major Canadian crypto trading platform Coinsquare has announced an acquisition of the decentralized exchange StellarX, following the previous purchase of the wallet BlockEQ. The background for the purchases is believed to be prepared back last December, when the company acquired Stellar-based wallet, as the company press release reads. Coinsquare noted that the current deal is obviously good development after the last-year purchase. BlockEQ wallet is said to be reworked to become the main feature of the DEX platform.

Canada-based Coinsquare exchange becomes new owner of StellarX platform

Next story

15 February, 2019 10:50

Poloniex becomes second exchange to add Grin →

Poloniex trading platform has reportedly added Grin coin that is said to be designed to boost privacy of the users. The platform will offer trading of BTC and USDC to Grin. As the company explained, they see the Grin project as "unique" with no ICO being held. One of the main features is that the coin is highly anonymous, while "new tokens are released only via PoW mining rewards". Moreover, it is even unclear where its developers are located. The deposit/withdrawal services will be launched in the near term.

Poloniex becomes second exchange to add Grin
Write a comment
 
Prove you’re not a bot + 14 = 34