The Securities and Exchange Commission, SEC has recently announced that an emergency court order has been secured to go against Blockvest, a company ran by Reginald Buddy Ringgold, who recently organized an ICO under the false pretense that the SEC already approved the ICO. The offense has been reported to be a violation of federal law.
Blockvest is Two Faced
It was also reported that Blockvest falsely claiming their crypto fund was ‘licensed and regulated.'”
The SEC further made a statement in connections to the court order, stating that:
“Blockvest and Ringgold also allegedly misrepresented Blockvest’s connections to a well-known accounting firm, and continued their fraudulent conduct even after the National Futures Association (NFA) sent them a cease-and-desist letter to stop them from using the NFA’s seal and from making false claims about their status with that organization,”
The hearing for this case is now set for the 18th of October, and it is expected to take place in the Southern District of California.
The SEC Made it Case
The public record on this case contains words from the SEC, which states that:
“We allege that this ICO is using both the SEC seal and a made-up crypto regulatory authority to trick investors into believing the ICO was approved by regulators,”
Representing the SEC is Robert Cohen, who also confirmed the SEC stance in relations to fraudulent ICOs as well as impersonations.
He stated that:
“The SEC does not endorse investment products and investors should be highly skeptical of any claims suggesting otherwise.”
The SEC Withdrawing Itself
There has been reported of fraudulent ICOs operator using fake badges and approval statements from the top regulatory agency, in an attempt to prove that they are running a legitimate operation.
As a result of this, the SEC chair Jay Clayton has also released a statement stating that:
“A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation,”