Initial Coin Offering or ICO were very popular in the crypto industry around 2017 as major companies hosted such events to allow investors to own a part of any newly listed tokens. But with malicious actors always on the prowl in the industry, it was not long before they hijacked the budding legitimate ICOs, hosting fake and illegal Initial Coin Offerings along the years.
Even though law enforcement and authorities have been able to put them on a leash, there are still some malicious actors carrying out illegal and fake ICOs around the crypto win. In another win against malicious actors, the United States Securities and Exchange Commission has announced that it has taken down another crypto firm that was hosting an illegal Initial Coin Offering.
Protracted lawsuits between SEC and Blockvest lasted for two years
During the period that Initial Coin Offerings were hot around the block in 2018, the United States SEC took down a firm, Blockvest and what followed was a protracted legal battle between them and the firm. After years of several lawsuits and court sittings, a United States court has officially given its verdict in that regard.
A copy of the document filed in the court by the United States Securities and Exchange Commission showed that the agency wants the court to rule in its favour, thereby rule for a permanent injunction, redistribute the funds gotten from the illegal ICO, and slam them with penalties for hosting an illegal Initial Coin Offering.
Also, the filing showed that the United States SEC wants the founder of the firm, Reginald Buddy Ringgold III, who also goes by Rasool Abdul Rahim El punished accordingly. After the SEC found the firm guilty, it halted any services on the platform which has been involved in legal proceedings with them in the past two years. The United States SEC mentioned that the reason that they are pushing for the injunction is that Ringgold and his firm were well aware that they were carrying out an illegal activity but continued.
Blockvest Slammed with various penalties asides fine
The United States SEC also mentioned that when evidence pointed out that the ICO was illegal, Blockvest and its CEO did everything to try to cover up that fact. The main bone of contention was that Ringgold claims to have registered the Initial Coin Offering with the United States SEC, but the government agency claimed that no such ICO was registered with them.
In the files court document, it said that Blockvest made a grave mistake when they said that they had registered the ICO and it adorned their logo. Te document also claimed that the firm also lied that they had approval from the Commodities and Futures Trading Commission and the National Futures Association, all which turned out to be false.
In the latest ruling, the court has mandated Ringgold and his firm to return all the funds that were invested in the Initial Coin Offering. Also, the document claimed that all the amounts that will be paid, including disgorgements, will be approximately $700,000. In the final details in the document, Ringgold and his firm has been slammed with various restrictions and conditions that should be followed.
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