Today the SEC announced that it has obtained a court order
halting a planned ICO and an ongoing pre-ICO of Blockvest, LLC and its founder Reginald Buddy Ringgold, III (aka Rasool Abdul Rahim El).
In its complaint the SEC alleges numerous violations of the securities law committed by Blockvest LLC and its founder. In addition, the complaint indicates that as part of the ICO promotion, Mr. Ringgold created a fake agency named the "Blockchain Exchange Commission" and used a graphic similar to the official SEC seal and the same address as the SEC headquarters claiming that his crypto fund was "licensed and regulated."
Moreover, Blockvest LLC falsely claimed a connection to a well-known accounting firm and used the NFA seal making false claims about its status with the organization. Blockvest LLC continued the fraudulent offering of unregistered securities even after the a cease-and-desist letter was sent to Blockvest LLC by the NFA (National Futures Association).
In fact, Blockvest LLC has not been registered with the SEC nor was it registered with the NFA. The SEC's complaint charges Blockvest and Ringgold with violating the securities registration and antifraud law. The complaint seeks injunctions, return of ill-gotten gains with interest and penalties, and a bar against Mr. Ringgold to prohibit him from participating in offering any securities, including digital securities, in the future or making misrepresentations about regulatory approval.
Summarized by Katrina Arden
Attorney and founder of Blockchain Law Group