As per the latest reports, the Securities and Exchange Commission (SEC) has brought yet another cryptocurrency firm to the court. This time, the firm that is getting penalized by the US SEC is Rivetz that has been alleged of running an unregistered/illegal initial coin offering (ICO).
The US SEC has alleged Rivetz of being involved in operating an illegal initial coin offering. As a result of the illegal securities, the firm generated around $18 million from a number of investors.
It was back in 2013 when Rivetz was founded but the blockchain firm that was providing hardware-related services is no longer functional. The firm has reportedly been accused by the Securities and Exchange Commission of the United States of operating an ICO. The US SEC has alleged that the platform was involved in providing such services without any official approval or licensing.
Therefore, the services that the platform provided were unregistered and thus, illegal to begin with. Throughout the ICO process, the firm managed to generate funds worth $18 million. The offering for the coins was reportedly carried out by the firm from July 2017 and ending in September 2017.
According to the US SEC, the platform was able to engage with a total of 7,200 investors that helped it generate $18 million in funds.
The complaint around the platform’s involvement in illegal securities offering was submitted by the complainant on September 8, 2021. In the complaint, the plaintiff has imposed allegations on several entities from within Rivetz.
The sources have revealed that the allegations have been imposed against Steven Sprague, the founder of Rivetz as well as Rivetz Corp. These entities will be prosecuted by the court in order to investigate and enquire about the true matter. In addition to the primary defendants, the plaintiff has also filed a case against Rivetz International, which is the subsidiary of Rivetz Corp.
In the complaint, it has been detailed that the initial coin offering involved the selling of the RvT token, which is the native asset for Rivetz. The SEC has claimed that the Rivetz claimed it was an investment opportunity throughout the promotion and investment phase of the RvT token.
Through a successful initial coin offering, the platform managed to generate huge gains. From the proceeds, Rivetz went ahead and developed its project, adding new products and services to it. The SEC has claimed that with the proceeds, Rivetz proceeded with the development and launch of an application for the platform.
In addition to the application, Rivetz also went ahead with building cyber security hardware for the company, as well as built an entire ecosystem for the platform.
However, the SEC claims Rivetz was not authorized to carry out the ICO in the first place and it must be taken to justice for carrying out illegal services in the United States.