United

Rivetz

Coin

<h4><strong>A U.S. federal judge has ruled in favor of the <a href="https://www.altcoinbuzz.io/?s=sec" target="_blank" rel="noopener">Securities and Exchange Commission (SEC)</a> in a legal battle involving Rivetz Corp and its CEO, Steven Sprague.&nbsp;</strong></h4> 
<p>The SEC accused Rivetz of selling unregistered securities through an Initial Coin Offering (ICO) in 2017. This decision marks another win for the SEC as it continues its crackdown on crypto companies that allegedly violate securities laws.</p> 
<h5><strong>The Case Against Rivetz</strong></h5> 
<p>Rivetz is a now-defunct blockchain company. It raised $18 million through an ICO by selling Rivetz (RvT) tokens. However, the SEC <a href="https://www.courtlistener.com/docket/60369392/62/securities-and-exchange-commission-v-rivetz-corp/" target="_blank" rel="noopener">claimed</a> that Rivetz offered these tokens to over 7,200 investors, with a bulk of them in the United States.</p> 
<p>ICOs are a common way for crypto startups to raise funds. However, the SEC often scrutinizes them to check if the tokens sold breach US securities law.</p> 
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<p>In Rivetz’s <a href="https://www.courtlistener.com/docket/60369392/62/securities-and-exchange-commission-v-rivetz-corp/" target="_blank" rel="noopener">case</a>, Judge Mark Mastroianni, presiding over the case, agreed with the SEC’s claims. He ruled that the RvT tokens were unregistered securities. The federal judge faulted Sprague for failing to file the necessary registration with the SEC before launching the ICO.</p> 
<p>Sprague argued that tokens were software products. However, Judge Mastroianni maintained that their value depended on Rivetz’s plans being successful. This makes the tokens a security based on the Howey test.</p> 
<p>The court has asked the SEC and Rivetz’s CEO to submit a proposed judgment for penalties and other relief by October 22, 2024. Sprague has until November 5, 2024, to file any objections.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">I would have commented if they had reached out.</p> 
 <p>This case is a new stretch. No secondary market was offered or promoted.<br> The promise to enhance a product is now a security</p> 
 <p>SEC wins case against defunct crypto firm over $18M ICO <a href="https://t.co/kEsJ3oLsN5">https://t.co/kEsJ3oLsN5</a> via <a href="https://twitter.com/Cointelegraph?ref_src=twsrc%5Etfw">@cointelegraph</a></p> 
 <p>— steven sprague (@skswave) <a href="https://twitter.com/skswave/status/1841076617889636859?ref_src=twsrc%5Etfw">October 1, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h5><strong>A Broader Trend</strong></h5> 
<p>This case is just one of many in the SEC’s <a href="https://www.altcoinbuzz.io/cryptocurrency-news/sec-charges-mango-dao-blockworks-for-illegal-sales/" target="_blank" rel="noopener">ongoing efforts</a> to regulate the crypto space. In recent years, the SEC has filed suits against various crypto companies, including Coinbase and Binance, alleging that they facilitated the trading of unregistered securities.</p> 
<p>The case against Rivetz reinforces the SEC’s stance that many ICOs involve securities and must comply with federal laws.</p> 
<p><img decoding="async" class="alignnone size-full wp-image-123700" src="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner.jpg" alt="" width="1197" height="148" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner.jpg 1197w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-300x37.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1024x127.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-768x95.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-696x86.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1068x132.jpg 1068w" sizes="(max-width: 1197px) 100vw, 1197px"></p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/sec-prevails-in-18m-ico-case-against-defunct-crypto-firm/">SEC Prevails in $18M ICO Case Against Defunct Crypto Firm</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

SEC Prevails in $18M ICO Case Against Defunct Crypto Firm

Altcoin Buzz

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