SEC Shuts Down ICO Claiming SEC Approval

Don’t tug on Superman’s cape:

sec-logo

The Securities and Exchange Commission got an emergency court order to stop an Initial Coin Offering that falsely claimed that the SEC had “approved” the ICO. It also halted pre-sales of the tokens from Blockvest LLC and its founder, Reginald Buddy Ringgold, III (aka: Rasool Abdul Rahim El – probably not Superman’s dad).

His offering documents apparently “promoted the ICO with a fake agency he created called the “Blockchain Exchange Commission,” using a graphic similar to the SEC’s seal and the same address as SEC headquarters.”

He also allegedly misrepresented a relationship with an accounting firm and “continued their fraudulent conduct even after the National Futures Association (NFA) sent them a cease-and-desist letter to stop them from using the NFA’s seal and from making false claims about their status with that organization.”

On the other hand, mutual fund giant Fidelity announced a new and separate company called Fidelity Digital Asset Services that plans to handle custody for cryptocurrencies such as bitcoin and will execute trades on multiple exchanges for investors such as hedge funds and family offices.

https://www.sec.gov/news/press-release/2018-232

https://www.cnbc.com/2018/10/15/fidelity-launches-trade-execution-and-custody-for-cryptocurrencies.html

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Banking, CFTC, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, fraud, Funding Portals, Investments, Jobs, Legislative Intent, review, SEC, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , . Bookmark the permalink.

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