A federal judge for the Southern District of California has argued in a recent court filing that blockchain-based assets commutation Blockvest and founder Reginald Buddy Ringgold Three should lose their defense force in a Securities and Exchange Commission (SEC) case after allegations of fraud and misconduct.

Court documents released on April 20 evidence Gauge Michael South. Berg has recommended granting plaintiff SEC's "Movement for Terminating Sanctions" against Blockvest.

"The Court has considered culling monetary, evidentiary, and issue preclusion sanctions, and concludes that, under the facts of this example, even broad sanctions would non adequately redress Defendants' egregious misconduct and cant."

Blockvest and its founder'southward "egregious misconduct and willful deception apropos primal issues in this litigation justifies the imposition [of terminating sanctions]," the Judge said in his filing, while admitting sanctions were a "harsh remedy" for the exchange'south deportment.

Allegations of falsifying documents

Blockvest ran a $ii.five million pre-initial coin offering before being restricted past the SEC in October 2022. While the courtroom initially said the commutation had not violated securities laws past selling "unregistered securities in the grade of digital avails" with its BLV tokens, the commission later gained an injunction against Blockvest.

Equally the instance has developed, Reginald Buddy Ringgold, III, aka Rasool Abdul Rahim El, and Blockvest have been defendant by the SEC of forging signatures and encouraging fake declarations for key evidence in the lawsuit. The April 20 filing is part of the court'southward response to the SEC motioning for a default judgement on terminating sanctions.