SEC Halts Fraudulent ICO that Falsely Claimed Regulatory Approval

SEC ICO Cryptocurrency

The U.S. Securities and Exchange Commission (SEC) announced on Thursday that it had obtained an emergency court order to halt an initial coin offering (ICO) that fraudulently claimed to have SEC approval.

According to the complaint, which was filed under seal on Oct. 3, Blockvest LLC and its founder — Reginald Buddy Ringgold, III, aka Rasool Abdul Rahim El — told prospective ICO investors that the company had “registered” with the SEC and had been “approved” by the agency, along with other regulators. That, along with other claims that Blockvest made, was not true.

From the complaint:

“Blockvest and Ringgold claim their ICO has been ‘registered’ and ‘approved’ by the SEC and other regulators, even going so far as to use the SEC’s seal to promote their offering. None of that is true: the SEC has in no way approved, authorized or otherwise endorsed defendants, their entities, nor their ICO. Defendants also claim they are “partnered” with and “audited by” Deloitte Touche Tohmatsu Limited (“Deloitte”)-which they are not.”

In a bizarre move to keep up the charade, Ringgold created a fictitious regulatory agency, the “Blockchain Exchange Commission,” whose logo closely mirrored that of the SEC and linked to the government agency’s official website.

“We allege that this ICO is using both the SEC seal and a made-up crypto regulatory authority to trick investors into believing the ICO was approved by regulators,” said Robert A. Cohen, Chief of the SEC Enforcement Division’s Cyber Unit. “The SEC does not endorse investment products and investors should be highly skeptical of any claims suggesting otherwise.”

Had the SEC not obtained the court order halting the Blockvest ICO, the agency said that Ringgold would have made a scheduled appearance at an ICO conference in Los Angeles at which he would likely have continued to market his cryptocurrency token through fraudulent means.

Notably, the SEC’s action against Blockvest comes shortly after the Commodity Futures Trading Commission (CFTC) filed charges against a fraudulent cryptocurrency investment scheme whose operators impersonated CFTC regulators and forged documents to grift bitcoin from retail investors.

Read the full complaint below:

SEC Blockvest Complaint by CCN on Scribd

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.

• Join CCN’s crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from Hacked.com? Click here.
• Open Positions at CCN: Full Time and Part Time Journalists Wanted.

Advertisement

SEC Halts Fraudulent ICO that Falsely Claimed Regulatory Approval 1
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 44,864.00
ethereum
Ethereum (ETH) $ 3,159.01
cardano
Cardano (ADA) $ 2.27
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 383.25
xrp
XRP (XRP) $ 1.00
solana
Solana (SOL) $ 149.61
polkadot
Polkadot (DOT) $ 32.73
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.223986
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 44,864.00
ethereumEthereum (ETH)
$ 3,159.01
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 552.27
litecoinLitecoin (LTC)
$ 164.16
bitcoinBitcoin (BTC)
38.255,40
ethereumEthereum (ETH)
2.693,68
tetherTether (USDT)
0,852697
bitcoin-cashBitcoin Cash (BCH)
470,92
litecoinLitecoin (LTC)
139,98
bitcoinBitcoin (BTC)
32,890.92
ethereumEthereum (ETH)
2,315.95
tetherTether (USDT)
0.733125
bitcoin-cashBitcoin Cash (BCH)
404.88
litecoinLitecoin (LTC)
120.35

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021

Blockchain/Cryptocurrency Questions and Answers

Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin44,890 0.08 % 3.19 % 6.84 %
Ethereum3,157.9 0.09 % 4.16 % 12.18 %
Cardano2.270 0.10 % 2.21 % 8.93 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Binance Coin383.59 0.10 % 1.84 % 10.78 %
XRP1.000 0.36 % 1.87 % 10.24 %
Solana150.07 0.74 % 2.33 % 5.37 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
USD Coin1.000 0.06 % 0.17 % 0.22 %
Dogecoin0.2240 0.09 % 0.41 % 9.42 %

bitcoin
Bitcoin (BTC) $ 44,864.00
ethereum
Ethereum (ETH) $ 3,159.01
cardano
Cardano (ADA) $ 2.27
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 383.25
xrp
XRP (XRP) $ 1.00
solana
Solana (SOL) $ 149.61
polkadot
Polkadot (DOT) $ 32.73
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.223986