Another ICO stopped by SEC

The Securities and Exchange Commission (SEC) declared it’s stopping an continuing pre-Initial Blockvest LLC Coin Offering (ICO) and project’s global ICO campaign earlier scheduled for December 2018.

Initial startup’s goal was to create “The First Licensed and Regulated Tokenized Crypto Currency Exchange & Index Fund based in the US.”

As it was announced in company’s blog on the 24th of June, 2018, project’s decentralized exchange got SEC’s A+ approval which maid their securities offering available to unaccredited international Investors. Before that the start-up held the sale privately, only accessible to a select number of institutional and accredited investors, selling BLV, ERC20 security token, that’s “representative of the top performing cryptocurrency index.” Based on the project’s timeline, the private sale continued from the 1st till the 30th of April giving 50% discount for initial investors.

The main cause for halting the sale from SEC’s side were Blockvest’s misleading declarations that its ICO and its subsidiaries received regulatory approval from several authorities, including the SEC. As stated in the SEC’s complaint, the company’s team (including quite known in the field David Drake mentioned on the website as a Chief Strategy Officer, and the page was deleted from the website shortly but happy me made a screenshot):

was utilizing SEC seal without permission, which violates the federal law. Also, they were falsely declaring that their fund was “licensed and regulated.” The complaint also testifies company’s CEO promoted the ICO with a fake agency he invented called the “Blockchain Exchange Commission,” using a logo similar to the SEC’s seal with the same address as SEC office.

However, it’s profoundly troubling that for SEC it was the sole reason to suspend the token sale.

Just some of the blunders to mention: according to the page 10 (out of 11) of the project’s whitepaper the “total supply of 100 million Blockvest will be created, with 50 million tokens will be held in a smart contract and will be released in a year for future development & the Global IPO, 32.5 million going to the token sale, 10 million going to the team and advisors, 5 million going to the Core Activities Reserves, 2.5 million to marketing and partnership incentives.”

Token supply

If to check the public Blockvest token wallet you can see that total supply of the tokens is 100,000,000 BLV.  Moreover, it to review the project’s smart contract you can notice that total supply is 1,000,000,000 BLV.

Token distribution

Not to name that token’s distribution defined in the whitepaper is different from the one on the project’s website.

Project Roadmap

Another point, according to the roadmap in August 2018 Blockvest DEX was supposed to Launch Demo MVP Atomic Swap Platform. But the first and the last action on the project’s Github happened half of the year ago. Within the last months its only contributor, Github user risingstar2018 was actively associated with the development of the project called KIZUNACOIN, that is “stronger than blockchain” as it described on the project’s website.

 

At the moment, the special announcement emerged on the Blokvest’s landing page, informing that “The BLV Private Token Sale has been halted until further notice. The Blockvest highly anticipated DEX platform will be released as planned in Q4 2018.”

But, will I write this, it’s still possible to register the account on the website, pass KYC  check and access weirdly looking interface allowing you to deposit the funds. And it doesn’t seem like halting to me.

Coinjive is a personal blog ran by Ana that aims to bring the most truthful, simple to comprehend, backed by facts and well-researched information. Although, please agree to accept a dash of subjectivity. Coinjive is run by a human after all. Reach out with comments, questions, and suggestion at the Contact Us section.

 

Author:
Ana (@coinjive) has been involved in the crypto industry for more than a year now. She was working for three ICOs (as a PR / and CMO). And prior to dive into the blockchain reality, she served as a Communication manager for big tech and less tech companies (including SAP, Evernote, Avon and, etc.). Currently, she works as a contributor at Future Times and as ICO analyst for a private Israel-based crypto venture capital firm. P.S. please agree to accept a dash of subjectivity. Coinjive is run by a human after all.