US SEC stops operations of a fraudulent token sale

US SEC stops operations of a fraudulent token sale
Oct 12, 2018 by Rico Wise

Yesterday, the US regulator has made an announcement about obtaining an emergency court order to stop operations of the Blockvest company, which, along with its creator, Reginald Buddy Ringgold III, falsely claimed to initial coin offering financiers that the firm had undergone registration with the SEC and received not only the authority’s approval, but from other agencies as well. This turned out to be pure lies.

According to the complaint, Blockvest and its founder went as far as to use the SEC’s seal, falsely claiming the authority’s approval to promote their token sale. Apart from involving the SEC, the accused fraudsters also claimed to be engaged in a partnership with Deloitte Touche Tohmatsu Limited, which also allegedly audited the fraudulent company. As it turned out, this was also a lie.

In order to try and keep fooling people further, Ringgold set up a fake policymaking authority dubbed “Blockchain Exchange Commission”, which had a logotype very reminiscent of the SEC’s one, and linked to the state authority’s web page.

If the Commission failed to obtain the court order to stop the token sale of Blockvest, the authority claimed that its founder would have appeared at an ICO conference in Los Angeles , where he would most probably have proceeded to advertise his digital currency token using unlawful means.