Rivetz Corp., along with Rivetz International and executives of both organizations, have been charged by the Securities & Exchange Commission (SEC) with allegedly offering illicit coins, according to a press release.
Between July and September 2017, Rivets allegedly offered and sold tokens called “RvT tokens” to the public, as well as investors, to help capitalize on the business.
According to the complaint, President Rivetz Steven K. Sprague reportedly marketed the RvT as a valuable investment opportunity, claiming it would be available for trading on digital asset platforms and outlining where it could be resold.
Sprague’s prowess as a businessman has also been touted, and the company says his efforts will only see the value of RvT tokens increase.
In reality, the tokens could not be used to purchase anything. And in addition, defendants’ bids for RvT were able to raise approximately $18 million from investors, but the sales were not registered with the SEC and did not qualify for the registration exemption. .
The defendants have been charged with allegedly violating the securities registration provisions of Section 5 of the Securities Act of 1933, and the statement says the SEC will consider an injunction, the return of the allegedly illegal gains , as well as prejudgment interest and a civil penalty.
Recently, the SEC also threatened Coinbase with legal action regarding the company’s Coinbase Lend lending product. Coinbase said it didn’t know why.
Coinbase says it received a Wells notice, or intent to sue, from the SEC. He had been in contact with the organization for months about its planned loan product. The company said it decided to seek the SEC’s opinion rather than simply roll out the proceeds, which will be used to loan out the USDC they hold on the platform, also earning interest.
Coinbase said it responded to SEC questions in writing and in person.