SEC Stops Fraudulent ICO That Falsely Claimed SEC Approval

October 12

The U.S. SEC announced yesterday that it had stopped what sounds like the most brazen fake ICO yet.  According to the complaint, Blockvest LLC not only falsely claimed that it had obtained SEC approval, it also used the SEC seal without permission (a violation of federal law) and promoted the ICO with a fake agency called the “Blockchain Exchange Commission” (using a graphic similar to the SEC’s seal and the same address as SEC headquarters).

The complaint seeks injunctions, return of ill-gotten gains plus interest and penalties, and a bar against its principal (Reginald Buddy Ringgold, III) to prohibit him from participating in offering any securities, including digital securities, in the future or making misrepresentations about regulatory approval.  The federal court in California issued an order freezing defendants’ assets and other emergency relief.

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David Zaslowsky has a degree in computer science and, before going to Yale Law School, was a computer programmer. He is currently the Chairman of the Litigation Department of the firm’s New York office. His practice focuses on international litigation and arbitration. He has been involved in cases in trial and appellate courts across the United States and before arbitral institutions around the world. Many of David’s cases, including some patent cases, have related to technology. Since 2008, David has been included in Chambers for his expertise in international arbitration.

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