BlockVest

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BlockVest
Blockvest.jpg
Founded 2017
Headquarters San Diego, CA
Key People Reginald Buddy Ringgold, III
Employees 5-15
Products Decentralized cryptocurrency exchange
LinkedIn Profile
Facebook blockvest.io
Website BlockVest Home

BlockVest is a decentralized cryptocurrency exchange. The company behind it, also called BlockVest, also plans on offering a cryptocurrency index fund to consumers, which tracks prices for the top 30 cryptocurrencies. Its initial coin offering (ICO) was halted by the U.S. Securities and Exchange Commission (SEC) in October 2018.[1]

Background

BlockVest was founded in 2017 by Reginald Ringgold.[2] In October 2018, the SEC obtained an emergency order halting BlockVest's ICO. The SEC published an official statement saying that BlockVest's claim that it was fully-regulated, a claim Ringgold has made personally, is false. The SEC said that BlockVest had never registered as a securities exchange. The statement referenced the "Blockchain Exchange Commission," an organization started by Ringgold, which prominently uses a logo very similar to that of the SEC. The SEC also accused the company of illegally using the SEC's seal without permission in order to market the exchange's release. Robert A. Cohen, the chief of the SEC Enforcement Divison of the SEC's Cyber Unit, said that the SEC "allege that this ICO is using both the SEC seal and a made-up crypto regulatory authority to trick investors into believing the ICO was approved by regulators. The SEC does not endorse investment products and investors should be highly skeptical of any claims suggesting otherwise."[3][4][5]

The case went to court in Southern California. BlockVest argued that its tokens were used only to test the exchange, and that the majority of the investors in its ICO were friends and relatives of Ringgold. It also argued that its purported $2.5 million raised were mostly raised from a single investor, who had pulled out of the deal. Judge Gonzalo Curiel of the Southern District of California declared that the SEC's investigation of BlockVest had failed to demonstrate that BlockVest's ICO met the characteristics of a security under U.S. law.[6][7]

References