As of September 8, the SEC has sued blockchain project Rivetz and its founder, Steven Sprague, for the 2017 RvT token initial offering.
According to the information in the SEC’s complaint file; Between July and September 2017, Rivetz company sold $18 million worth of RvT tokens through a subsidiary in the Cayman Islands to raise capital for the project. The firm also sued the SEC on the grounds that it had never filed or applied for a registration with the SEC. It was stated that Sprague and Rivetz also announced and advertised this sale to investors as an investment strategy.
As it is known, the great interest in ICOs in 2017 and 2018 was called the “ICO boom” by the industry. While the SEC has also investigated such reckless bids for years, the agency has only sued or made part of its investigation against companies and individuals who made substantial profits.
$1 million bonus and $2.5 million house
According to the calculations of the SEC, the Rivetz company has cashed out all its Ethereum earnings as of March 2018. The agency also claims that the company’s founder Sprague was given a $1 million bonus, with an extra $2.5 million in loan. It is stated that Sprague bought a house in the Cayman Islands with a loan from the company he founded, and this house was later rented to the company.
Requesting a refund of all winnings
According to the complaint, the SEC is demanding that the company and Sprague reimburse all profits from this ICO, but did not specify an amount.
EOS was the largest in history
As it is known, the biggest offer in ICO history was Block.one company’s $ 4 billion EOS token offer, and the SEC resolved this investigation with an agreement between the parties. In 2019, Block.one, the parent company of EOS, was fined $ 24 million, and with this payment, the issue was resolved without taking it to court.
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