The regulators in the United States have spent years in taking legal action against Blockvest, the Initial Coin Offering (ICO) that took place in 2018. Now, it has been issued its final orders. Last Thursday, according to the court filing, the Securities and Exchange Commission (SEC) in the US, is seeking a permanent injunction, a fund disgorgement, along with civil penalties against the case’s defendants due to their illegal conduct. These charges are being brought against them by the SEC as a government agency. The court case had followed an individual named Rasool Abdul Rahim El, who was recognized under the impress America alias known as Reginald Buddy Ringgold III, and Blockvest, the ICO founder.
Back in October 2018, the Securities and Exchange Commission (SEC) had taken action against Blockvest and brought it to a halt. For the last two years, there had been legal dealings and developments and the whole saga is finally heading towards a close now. The SEC has justified the permanent injunction it is seeking by way of how Blockvest as well as Ringgold himself were fully aware of the fact that their actions were illegal and yet they continued to pursue the ICO without any concern of the repercussions. During the legal proceedings, the defendants in the case had gone as far as covering up whatever evidence they could.
The most important feature of this entire legal case was the claim made by Ringgold that he had registered the ICO with the SEC, even though he had done no such thing at all. This meant that the defendants had deliberately been misrepresenting the fact that the SEC had approved their ICO. As a matter of fact, they had taken things as far as using the logo of the watchdog. The story didn’t come to a close here either, as it appears that Ringgold continued with his far-fetched claims.
Not only did he claim that the ICO was fully regulated by the ICO, but also said that he even had connections with two other regulators as well. In fact, the defendants went on to claim that the regulatory connections they had were with the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Still, the defendants were not satisfied with these names because they had even gone on to come up with their own regulatory watchdog known as The Blockchain Commission i.e. BEC. They ended up developing a government seal, their own logo, along with a mission statement.
All of these are fake and in fact, were quite similar to that of the SEC. As a matter of fact, BEC even had the same address as the SEC. As per the sentencing, multiple compensation fines have to be paid by Blockvest and Ringgold. After tallying up the civil penalties, the disgorgement payments, interest and refunding the participants, the total is around $696,097.90. The defendants have to pay this significant amount and also have to deal with a number of restrictions and conditions that have been imposed.