The defunct key security firm raised $18 million in an unlawful ICO.
Key Takeaways
- Digital key management firm Rivetz has been charged by the SEC with working an unlawful securities offering.
- The defunct firm ran an initial coin offering in 2017 that raised $18 million from U.S. investors and the general public.
- Rivetz didn’t bring on its promises, while its founder spent the funds raised on internal most charges.
The U.S. Securities and Alternate Commission has charged Rivetz with working an unlawful and unregistered securities offering.
Rivetz Failed to Register With SEC
Rivetz changed into as soon as primarily based in 2015 with the said aim of surroundings up a digital key management system primarily primarily based on depended on hardware.
In accordance with the SEC, Rivetz sold digital sources called “RvT tokens” to investors within the U.S. and in other areas by an ICO starting in 2017. Nonetheless, Rivetz changed into as soon as no longer registered with the SEC.
The SEC notorious that RvT sales raised $18 million in cryptocurrency from investors in this intention and that it had promoted the RvT tokens by promising future tag and availability on exchanges.
Rivetz Tokens Had No Utility
The SEC went on to criticize RVT’s lack of utility, stating “investors might seemingly no longer use any items and companies and products the utilization of RvT tokens, and the tokens had no assorted employ in any Rivetz companies and products or merchandise.”
Furthermore, the firm spent or redeemed all of the crypto sources that the sale had raised by March 2018. Some of these funds were former by founder Steven Sprague on internal most charges.
Rivetz is now defunct. The firm’s web presence seems to catch ended sometime in 2020 when its web predicament went offline. Its Twitter profile changed into as soon as last updated in September 2019.
SEC Choices Dwell Controversial
Defunct crypto companies that didn’t meet their promises are many times targeted by the SEC. In assorted equivalent conditions all the intention by the last few months, the regulator targeted Coinschedule and Loci.
While the news around Rivetz might seemingly additionally very successfully be considered as a justified penalty for wrongdoing, it also comes alongside more controversial SEC actions.
Earlier this week, the regulator threatened to sue crypto commerce Coinbase over its lending merchandise. Coinbase CEO Brian Armstrong has contested this, calling the SEC’s actions “sketchy habits.”
Meanwhile, the SEC has also delayed its decision on a VanEck Bitcoin ETF, a many conditions rejected investment fund proposal that has been below revision since no longer lower than 2017.
Indirectly, the SEC is locked in war with Ripple, which is combating the claims that its XRP sales violated rules..
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