Blockvest is being sued the Securities and Exchange Commission for making false claims that the regulator’s approval for its planned ICO. The regulator is looking for an injunction against the defendant in return for all the financial gains of its ICO activities.
The complaint again Blockvest
According to Ethereum World News, the SEC gained an emergency court order form a US District Court to prevent Blockvest planned ICO to go ahead as well as the current pre-ICO sales.
The SEC is blaming Blockvest, and all that is affiliated with them or falsely claiming approval from several different regulatory agencies including the SEC. In the official complaint filed with the court, SEC alleges that the company is using its seal without permission which is a violation of federal laws.
Aside from the lawsuit blaming Blockvest for false claims again the SEC, they also accuse the company of advertising its ICO by misrepresenting its connection to a major accounting firm.
A US District Court judge for the Southern District of California issued the order and froze the assets of the company. On October 18th, a court hearing is set to take place to consider the allegations and find out whether or not to issue a preliminary injunction against the defendants.
Around the world, financial regulators see ICOs as a convenient tool for fraud and money laundering. In the United States, financial regulators have taken on a strict approach to regulate ICOs and cryptocurrency fundraising activities. In the industry, the country has seen a boost in coordinated enforcement drives by agencies like the SEC and CFTC.
In a series of several legal acts in the crypto space, this court order is the most recent. The claims are similar in the sense they are against false promotions, defraud local traders and coin offerings.
Fraud and scams sadly aren’t fresh things for the industry. Just earlier this week the Prime Minister in New Zealand has had her face used in fake advertisements all over Facebook which has been tough for the government to crack down on.
My Big Coin Pay was served a lawsuit in January this year, by the CFTC on the allegations of defrauding investors by claiming their digital currency is backed up by gold.
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