The US Securities and Exchange Commission continues its “crusade” against cryptocurrency startups. This time, the SEC filed a lawsuit against the organizers of the Rivetz company for an unregistered ICO.
The company Rivetz, which was developing a solution for identifying users on the blockchain, carried out a sale of RvT tokens in 2017 to fund its activities.
Between July and September 2017, the company and founder Steven Sprague sold $ 18 million worth of RvT through a Cayman Islands firm, according to the SEC. At the same time, tokens were offered as an investment instrument.
The SEC stressed that the company did not apply for registration with the regulator. According to the lawsuit, the organizers of Rivetz spent or withdrew all the funds received by March 2018.
Thus, the founder of the company Stephen Sprague received a one-time premium of $ 1 million. In addition, the firm gave him a loan of $ 2.5 million to buy a house in the Cayman Islands.
The SEC requires the organizers of Rivetz to return all funds received, as well as pay a fine. The amount of the fine is not indicated in the claim. Recall that at the end of June, the SEC filed a similar lawsuit against the organizers of the cryptocurrency startup Loci.
