US Judge Denies SEC Push for Injunction Against Crypto Startup
A federal judge denied a preliminary injunction against the US Securities and Exchange Commission (SEC) allegedly attempting to freeze block store openings on suspicion of breaching securities laws.
In a November 27 ruling, a judge at the Gonzalo Curidi District Court rejected the SEC's request for an asset freeze, failing to prove that Blockvest or its founder, Reginald Buddy Ringgold, violated federal securities laws. Orders have already frozen the company's assets.)
Stephen Palley, Anderson Kill lawyer, said in an interview with CoinDesk that the blockvest and Ringgold assets should no longer be frozen without an open order or agreement.
The SEC has blamed other issues for claiming Blocky and Ringgold for the first time that regulators have approved token sales in mid-October.
In this case, the SEC claims that 32 individuals who interacted with the BLV token in the pre-sale effectively sold the securities, and Blockvest denies this. Instead, these 32 individuals helped block Test's platform testing aspects.
These 32 testers moved Bit Queen and Ethium to Block Best Exchange, but according to the ruling, they did not reveal any tokens.
The judge did not make a ruling on whether the BLV token was a security and wrote in writing that the evidence was not sufficient.
"At this stage, the court can not determine whether the BLV tokens provided to 32 test investors were & # 39; Security & # 39 ;. Therefore, plaintiffs will have 32 test investors with BLV tokens, ; Securities were. "
A deeper question
"I have a question about the facts," Palley said, according to the judge's ruling.
"I think what's important … does not mean it's a scam or a case of securities because something looks like a thief … [and] No. 2, the case is not over yet. There is a controversy, and we have to go to trial.
The judge also noted that after Blockvest and Ringgold had hired lawyers to discontinue the company's future token sales and "there is evidence" that backs Ringgold's assertions, "the plaintiff is in possession of a defendant, Do not make false statements "Before you hire a lawyer, make some" false statements ".
"So the plaintiff did not prove that he could repeat the mistake," he later wrote.
Palley pointed out that the SEC had "won in that sense" because the company did not collect any funds using tokens.
"We are pleased with the temporary injunction," said Ringgold. "The platform is committed to complying with all laws and regulations governing the industry."
"We acknowledged the mistake of the paper we submitted to Judge Curiel, but it was not the case that anyone made false statements with the intention of relying on statements of an allegation of investment. We did not raise capital on the basis of alleged allegations, we did not sell securities to those who trusted those false statements, and there was no intention to buy investors. "
Read the full verdict below:
SEC v Blockvest reserve … by Scribd
Court image through Shutterstock
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