According to a court document filed this week, the United States Securities Exchange Commission is seeking a permanent injunction, disgorgement of funds received from Blockvest’s illegal conduct, and civil penalties. The court case aims at both Blockvest, and its founder, Reginald Buddy Ringgold III, also known as Rasool Abdul Rahim El. The SEC put the brakes on Blockvest in October 2018 and saw a number of legal dealings for the next two years.
Blockvest founder did not register the token sale with the SEC.
The US SEC’s reason for seeking a permanent injunction was that Blockvest and Ringgold knew their actions were wrong but proceeded with the ICO anyway, covering up what they could during legal proceedings. Ringgold had not registered the token sale with the SEC but claimed otherwise. The court document states that the defendants misrepresented that the initial coin offering was ‘registered’ with and ‘approved’ by the SEC and used the SEC’s logo. The defendants also falsely claimed connections to the Commodity Futures Trading Commission and the National Futures Association.
Blockvest ordered to pay $700,000 in disorgement.
According to the court document, Blockvest and Ringgold must pay multiple sums of compensation, including refunding the capital that participants paid in the offering. Disgorgement payments, interest, and civil penalties come out to a cost of $696,097.90, as per the document. The defendants are also ordered to abide by a number of restraints and conditions. The court order lists other offenses such as a fictitious regulatory agency, the Blockchain Exchange Commission (‘BEC’), creating its own fake government seal, logo, and mission statement that is nearly identical to the SEC’s seal, logo, mission statement as well as using the same address as the SEC’s headquarters.
