In accordance with court documents released on November 27, a US court rejected the Blockvest platform’s decentralized Blockchain platform put forward by the US Securities and Exchange Commission (SEC).
We remind you that last month the SEC suspended the work of Blockvest and filed a lawsuit against the company. During the trial, questions were considered as to whether the BLV coins were registered and licensed in accordance with the requirements of the regulator and existing legislation.
After a thorough investigation, the case was referred to the US District Court for the Southern District of California, where the issue of temporary freezing of assets of the Blockvest platform was considered.
However, in a new edition this week, the court ruled that the SEC “could not” adequately demonstrate that the tokens mentioned were actually securities, according to Test Howey.
Later, a second hearing was held, during which the court ruled that regulators could not provide convincing evidence that the company’s tokens are securities according to Howey’s test. The documents reported:
“At this stage, without full discovery and disputed issues of material facts, the Court cannot make a determination whether the BLV token offered to the 32 test investors was a ‘security. Thus, Plaintiff [the SEC] has not demonstrated that the BLV tokens purchased by the 32 test investors were ‘securities’ as defined under the securities laws.”
At the end of the hearing, Judge Gonzalo P. Kuriel decided to reject the SEC’s request for a ban on the work of Blockvest.
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