The Rivetz SEC case ends in a ruling against Rivetz Corp. for illegal sales of unregistered securities.
Siding with the Securities and Exchange Commission (SEC), a U.S. federal court in Massachusetts ruled on Monday that Rivetz Corp. had engaged in the unlawful sale of unregistered securities.
🚨Just in: The #SEC has won its case against a defunct #Crypto firm, Rivetz, and its CEO for selling $18 million in unregistered securities through a 2017 ICO.#CoinPedia #CryptoNews #Blockchain
— Coinpedia (@CoinpediaNews) October 1, 2024
The court determined that Rivetz and its founder had violated securities laws by offering and selling unregistered digital tokens between 2017 and 2018.
Rivetz’s ICO Found to Violate Securities Laws
According to court documents, Rivetz raised approximately $18 million through the unregistered sale of its RvT tokens, which were marketed as a utility for securing devices and data on the blockchain.
The SEC countered that these tokens were offered for sale as investment contracts without following the required registration procedures.
The SEC claims that Rivetz and its founder fell short of the technological promises they made during their initial coin offering (ICO), even though they portrayed their tokens as a vital component of the platform’s security.
Investors were duped into thinking they were acquiring securities that were contingent on Rivetz’s future prosperity.
The court agreed with the SEC’s assertion that Rivetz’s ICO constituted the sale of unregistered securities, violating the Securities Act of 1933.
Mango DAO Pays $700,000 to Settle with SEC
Mango DAO agreed to pay $700,000 to resolve SEC charges stemming from the unregistered sale of its MNGO tokens in a different case.
📰 The SEC filed settled charges against Mango DAO over the unregistered offer and sale of $70 million worth of MGNO token tokens.#MangoDAO #SEC #MNGOhttps://t.co/cF6epQTqbc
— Cryptonews.com (@cryptonews) September 27, 2024
In spite of the MNGO tokens being issued within a decentralized autonomous organization, the SEC concluded that they qualified as securities under U.S. law.
Mango DAO promised to destroy any leftover MNGO tokens and stop trading them on exchanges as part of the settlement.
A separate settlement regarding unregistered broker activity was also reached by the SEC with Mango Labs LLC, a developer associated with the DAO.
These accusations were settled by both sides without acknowledging or rejecting the claims.