Court for the southern district of California refused to recognize the token of the project Blockvest securities, concluding that the American Commission on securities and exchange Commission (SEC) failed to prove that he is not in the context of U.S. law. This writes the CCN.
According to the SEC, Blockvest resorted to various manipulative tactics in its ICO, including the establishment of the Commission on the blockchain exchanges, designed, allegedly, to create the appearance of regulation of their proposal. The Commission, however, was serving the organization, albeit non-governmental.
Judge Gonzalo Curiel said in particular that the SEC failed to prove that any promotional materials Blockvest served as a tool to attract investors, and what is presented is not enough to recognize the security token in accordance with the test Howie. In addition, the project has refused to hold ICO.
The total amount collected Blockvest funds did not reach $10,000 distributed among 32 investors.
Representatives Blockvest, in turn, confirmed that the tokens of the project were used exclusively for testing on the exchanges. It was also pointed out that plans to collect $2.5 million was overly optimistic.
However, you cannot exclude that address Blockvest can be filed other charges. In particular, the defense did not dispute the fact that the proposal of a startup was not registered. SEC can also change the line charges and try to postpone consideration of the case Blockvest to another court.
Earlier this week, the head of the SEC, Jay Clayton said about the position of the regulator in relation to primary offerings of coins, noting that bitcoin does not have properties of securities.
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