After the hearing at the Southern District Court of California, the court refused to approve Blokvest token as a security since the US Securities and Exchange Commission failed to provide enough evidence that the token should be a security under the effective US rules.
As the US regulator stated, the company's ICO was full of manipulations. Specifically, Blockvest even established Blockchain Exchange Commission to put on a mask of the regulation for its ICO. However, this organization appears to be a real though non-governmental company.
Since the SEC failed to provide evidence that the promos of Blockvest were used to attract investors in some way, while presented evidence was not enough to determine the token as a security. Another important thing is that the project has cancelled ICO. In this context, the judge found unreasonable to put court restrictions.
"Based on the above, the Court DENIES Plaintiff’s motion for preliminary injunction," reads the conclusion of the court document.
As for Blockvest, the company stated that tokens were used only for testing on the trading platforms. Notably, the company did not register ICO, which means a violation of the rules in the USA. Thus, despite the loss, SEC can attempt to lodge another petition against Blockvest to another court.
The regulator has already indicated its stance regarding the ICO when it was highlighted that bitcoin showed no characteristics of securities.