Key Takeaways
- An ICO is launched by a company seeking funding for a new coin, app, or service.
- The CEO raised $18 million in bills by promoting RvT as an investment opportunity.
- CEO of Rivetz Corp faces $18M SEC charge
Rivetz Corp., Rivetz International SEZC, Rivetz President and CEO Rivetz International Steven K.
Sprague has been charged under the formal lawsuit release by the SEC.
The Commission claims that firms have offered securities via an initial coin offer illegally and unregistered.
The lawsuit says that the defendant offered and sold the Digital Assets, RvT tokens to the public, including investors from the US, from July to September 2017 (when ICOs began to gather a lot of steam).
The report also claims that the CEO promoted RvT by touting its value for investors as an investment opportunity. He succeeded in raising $18 million in bills.
The issue — the offer was not registered with the SEC and was not exempt.
It is not the first ICO that the SEC considered unlawful.
In the last several years, many of them have been charged – despite recruiting investors from the nation – for the same reasons – but not in accordance with US securities laws.
Furthermore, the violation is almost always the same - a lack of registration of the offer with the SEC and a lack of a derogation.
It should also be noted, however, that the Supreme Tribunal in the US limited the authority of the Commission to pursue sanctions against ICOs back in 2020.
Although analysts say that, despite the decrease in their dispute powers, the judgment of the Court really favors the SEC and that its capacity to pursue fines and sanctions is better than the complete wipeout.
Do you think ICOs are a good investment?
