The USA District Courtroom, Southern District of California, has filed a closing judgment in opposition to Blockvest LLC and founder Reginald Buddy Ringgold. The order requires the defendants to pay a civil penalty of $332,370.99 together with a disgorgement of ill-gotten positive aspects of $363,726.91 – together with prejudgment curiosity.
The Securities and Trade Fee filed a complaint in opposition to Blockvest in 2018 alleging the gross sales of unregistered securities in an preliminary coin providing (ICO). The case hit a bump within the street when the SEC’s request for an asset freeze was initially denied. A later ruling to rethink allowed the injunction.
The unique grievance said:
“Blockvest, which purports to be the “first [U.S.] licensed and controlled tokenized cryptocurrency change and index fund”, claims that it has already raised greater than $2.5 million in pre-ICO gross sales of its BL V digital tokens (“BLVs”), and that it’ll increase $100 million throughout its ICO, purportedly to fund Blockvest’s digital asset-related monetary services.”
The SEC grievance said that Blockvest falsely claimed its ICO and its associates had obtained regulatory approval from varied businesses, together with the SEC.
At one level, Ringgold and his associates allegedly promoted the ICO with a faux regulatory company he created” the “Blockchain Trade Fee,” with a seal much like the SEC’s and the identical handle as SEC headquarters, in response to the SEC.
Ringgold initially defended his actions and the accusations leveled in opposition to him and his agency.
In February 2019, the courtroom granted a movement for Ringgold’s counsel to withdraw. Blockvest by no means retained counsel. The judgement notes that Ringgold proceeded with out counsel however stopped defending the case round Might 6, 2020, his final submitting within the case.