U.S. court orders ICO startup Blockvest to pay $696,000

The U.S. Securities and Exchange Commission (SEC) won the case against Blockvest LLC, an ICO startup, and its founder Reginald Buddy Ringold, also known as Rasul Abdul Rahim El. Law360 reports.

The SEC’s case against Blockvest had been ongoing since 2018. The commission alleged that the company’s head illegally used its seal. He falsely claimed that Blockvest had received regulator approval, including from a non-existent Blockchain Exchanges Commission.

On Thursday, December 10, the SEC filed its final allegations against the startup. The U.S. District Court for the Southern District of California ordered Blockvest and Ringold to comply with a number of restrictions and conditions, and to pay $696,097 in unlawfully raised funds, penalties and interest.

Final Judgment Dec 10 by ForkLog on Scribd

Earlier, in late November 2018, the SEC failed to provide sufficient evidence to classify Blockvest’s token as a security.

In February 2019, the court ruled that the token sale violated the Securities Act of 1933 and issued a preliminary injunction against Blockvest.

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