The U.S. Securities and Exchange Commission (SEC) has won a significant legal case against Rivetz, a crypto company that raised $18 million in 2017 through an initial coin offering (ICO).
The court ruled in favor of the SEC, allowing them to proceed without a trial. This decision confirms that Rivetz violated the law by selling securities without proper registration.
The SEC initiated this case in 2021, alleging that Rivetz did not comply with the Securities Act’s requirements when conducting its ICO.
Now, the SEC will collaborate with Rivetz’s CEO, Steven Sprague, to determine penalties, which could include fines and restrictions, by October 22, 2024.
Rivetz was a cryptocurrency company focused on enhancing security for digital devices like smartphones and computers. The company aimed to ensure the safe storage and usage of digital assets, including cryptocurrencies.
In 2017, Rivetz raised funds by selling digital tokens in an initial coin offering (ICO), a method for companies to secure investment through cryptocurrency.
The company encountered legal trouble for not adhering to regulations in selling tokens, leading to a case with the SEC.
The U.S. Securities and Exchange Commission (SEC) has intensified its regulation and enforcement in the cryptocurrency industry. Its primary aim is to protect investors by ensuring crypto firms follow the same rules as traditional financial markets.
One method the SEC employs is targeting companies conducting Initial Coin Offerings (ICOs) without proper registration. ICOs are akin to selling stocks and require regulation. When companies fail to comply, as in the case of Rivetz, the SEC takes legal action.
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Additionally, the SEC actively pursues firms offering cryptocurrency products or tokens that act like securities but don’t follow proper regulations, often resulting in lawsuits, fines, or, in some instances, the closure of the company.
Another significant focus for the SEC is combating fraud and scams in the crypto world, including Ponzi schemes and companies that mislead investors about their products.
Through these actions, the SEC aims to bring more clarity and fairness to the cryptocurrency market.
