Judge sides with the SEC in fight with Blockvest
The cryptocurrency trading company is accused of lying in court
Once more, the court has taken the side of the Securities and Exchange Commission (SEC) in a case against a blockchain-based asset exchange and its founder. This time, though, the target deserves the court’s ire. A federal judge from the Southern District of California has been arguing in a recent court filing that the founder of Blockvest, Reginald Buddy Ringgold III, should lose his defense due to allegations of fraud and misconduct during the court proceedings. Just yesterday, Judge Michael S. Berg has made the recommendation to grant the SEC a “Motion for Terminating Sanctions” against Blockvest.
“The Court has considered alternative monetary, evidentiary, and issue preclusion sanctions, and concludes that, under the facts of this case, even broad sanctions would not adequately redress Defendants’ egregious misconduct and deceit,” said the judge’s recommendation. The judge added that Blockvest’s, along with its founder’s, “egregious misconduct and willful deception concerning key issues in this litigation justifies the imposition [of terminating sanctions].” He did admit that these sanctions were a “harsh remedy” for the exchange’s actions.
Before being restricted from by the SEC, Blockvest ran a pre-initial coin offering for $2.5 million before October 2018. Initially, the court ruled in favor of the exchange, stating that by law, selling “unregistered securities in the form of digital assets,” but the SEC gained an injunction later. In the development of this case, the founder Reginald Buddy Ringgold, III, aka Rasool Abdul Rahim El along with his exchange has been accused by the SEC for other charges like forging signatures and encouraging false declarations, which were key evidence in the lawsuit.