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.
