Court Reconsiders November 2018 Order and Issues Preliminary Injunction Against ICO

Revealing how quickly the legal landscape regarding digital currency is changing, a court in the Southern District of California has reversed its initial course and issued a preliminary injunction to stop an ICO offering the SEC alleges is fraudulent. The SEC says that to give legitimacy to the venture, defendant Blockvest created a bogus self-regulatory agency modeled on the SEC and falsely claimed that the offering was approved by the SEC and exempt from registration, among other things. This article analyzes the court’s order. See “SEC Takes Aggressive Action Against Allegedly Fraudulent ICO” (Dec. 20, 2017).

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