C. Neil Gray

Firm/Organization: Reed Smith LLP

Blogs: FinTech Update, Technology Law Dispatch

Latest Articles

FINRA Issues First Litigated Enforcement Action Against Crowdfunding Portal

By Herbert F. Kozlov, C. Neil Gray, Le-el D. Sinai & Daphne Lambadariou on June 21, 2019

On June 5, 2019, a Financial Industry Regulatory Authority (FINRA) panel handed down its first enforcement action against a funding portal. DreamFunded, a crowdfunding platform, was banned from FINRA membership, and Manny Fernandez, DreamFunded’s CEO, was barred from association with any FINRA funding portal member. DreamFunded and Fernandez were further ordered to cover $15,900 in hearing costs. Although FINRA previously settled with another crowdfunding website in 2016, the panel’s 148-page DreamFunded decision marks the first…

Technology Law Dispatch

New SEC guidance provides some clarity for digital asset issuers

By Herbert Kozlov, C. Neil Gray, Ramsey Hanna & Maxwell J. Eichenberger on April 9, 2019

On April 3, 2019, the U.S. Securities and Exchange Commission (SEC) took their first step towards providing greater clarity on the key question of how to evaluate whether transactions involving issuance or sales of digital tokens are sales of securities subject to U.S. securities laws and regulations. The guidance was released in two parts: First, the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub) published the “Framework for ‘Investment Contract’ Analysis of Digital Assets”…

FinTech Update

SEC Releases Commentary Applying Howey Test to Digital Assets

By Herbert F. Kozlov, C. Neil Gray, Ramsey Hanna & Maxwell J. Eichenberger on April 8, 2019

On April 3, 2019, the U.S. Securities and Exchange Commission (SEC) took a first step toward providing greater clarity on the key question of how to evaluate whether transactions involving issuance or sales of digital tokens are sales of securities subject to U.S. securities laws and regulations. To read the full client alert, please visit reedsmith.com.…

Technology Law Dispatch

Court changes course in enforcement action against cryptocurrency company

By C. Neil Gray & Maxwell J. Eichenberger on March 13, 2019

The United States District Court for the Southern District of California recently changed course in an enforcement action brought by the U.S. Securities and Exchange Commission (SEC) against cryptocurrency company Blockvest, LLC and its founder. In doing so, the court granted the SEC’s request to preliminarily enjoin the defendants from violating the securities laws and analyzed what exactly it means to “offer” securities in the context of crypto-tokens. To review the full article on our…

FinTech Update

Ringgold II: Court Reverses Course on Preliminary Injunction of Digital Token

By C. Neil Gray & Maxwell J. Eichenberger on March 13, 2019

As detailed in a prior post on this blog, the United States District Court for the Southern District of California previously denied the U.S. Securities and Exchange Commission’s (SEC) request for a preliminary injunction against Blockvest, LLC and its founder and chairman Reginald Buddy Ringgold, III (Ringgold). Recently, upon reconsideration, the court changed course, finding that the SEC presented enough facts for the court to preliminarily enjoin Blockvest and Ringgold from further violating Section 17(a)…

Technology Law Dispatch

Federal Court deals SEC a setback in Blockvest ICO litigation

By C. Neil Gray, Herbert Kozlov & Jessica R. Stumacher on December 3, 2018

On November 28, 2018, the U.S. Securities and Exchange Commission’s (SEC) request for a preliminary injunction against Defendants Blockvest, LLC (Blockvest) and Blockvest’s founder and chairman Reginald Buddy Ringgold, III (Ringgold) was denied by United States District Court for the Southern District of California. Blockvest and Ringgold were offering and selling unregistered securities in the form of digital assets called BLV tokens, per allegations by the SEC. Blockvest sold the tokens in an initial coin…

FinTech Update

Federal Court denies SEC Injunction in Blockvest ICO

By C. Neil Gray, Herbert F. Kozlov & Jessica R. Stumacher on December 3, 2018

On November 28, 2018, the United States District Court for the Southern District of California denied the U.S. Securities and Exchange Commission’s (SEC) request for a preliminary injunction against Defendants Blockvest, LLC (Blockvest) and Blockvest’s founder and chairman Reginald Buddy Ringgold, III (Ringgold). Securities and Exchange Commission v. Blockvest, LLC, et al.[1] The SEC alleged that Blockvest and Ringgold were offering and selling unregistered securities in the form of digital assets called BLV tokens.…

Technology Law Dispatch

SEC settles two ICO enforcement actions

By C. Neil Gray, Herbert Kozlov & Maxwell J. Eichenberger on November 27, 2018

The U.S. Securities and Exchange Commission (SEC) recently settled two initial coin offering (ICO) enforcement actions grounded on the sale of unregistered securities. The two settlements, one with CarrierEQ Inc. (or AirFox) and the other with Paragon Coin Inc., are the first time the SEC has imposed civil penalties on companies solely for offering digital tokens in an ICO. Notably, the settlements signal the SEC’s intent to enforce the securities laws against sellers of cryptocurrencies,…

FinTech Update

SEC settlement of two ICOs based on sales of unregistered securities: No fraud claims asserted

By C. Neil Gray, Herbert F. Kozlov & Maxwell J. Eichenberger on November 27, 2018

On Friday, November 16, 2018, the U.S. Securities and Exchange Commission (SEC) announced that it settled two cases against digital token issuers. The settlements, one with CarrierEQ Inc. (AirFox) and the other with Paragon Coin Inc. (Paragon), are the first time that the SEC has imposed civil penalties on companies solely for offering digital tokens in an initial coin offering (ICO) that allegedly violates the securities laws. In addition to agreeing to pay civil fines…

FinTech Update

SEC in First Enforcement Action Against Token Exchange

By C. Neil Gray & Le-el D. Sinai on November 9, 2018

On November 8, 2018, the U.S. Securities and Exchange Commission (the “SEC”) settled its first case against an unregistered cryptocurrency exchange. Zachary Coburn, founder of EtherDelta, agreed to pay $313,000 in disgorgement and interest, along with a civil fine of $75,000, in order to settle SEC allegations that EtherDelta was acting as an unregistered securities exchange.…

C. Neil Gray

FINRA Issues First Litigated Enforcement Action Against Crowdfunding Portal

New SEC guidance provides some clarity for digital asset issuers

SEC Releases Commentary Applying Howey Test to Digital Assets

Court changes course in enforcement action against cryptocurrency company

Ringgold II: Court Reverses Course on Preliminary Injunction of Digital Token

Federal Court deals SEC a setback in Blockvest ICO litigation

Federal Court denies SEC Injunction in Blockvest ICO

SEC settles two ICO enforcement actions

SEC settlement of two ICOs based on sales of unregistered securities: No fraud claims asserted

SEC in First Enforcement Action Against Token Exchange

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