Rivetz International CEO entangled in $18 million fraud case

The United States Securities and Exchange Commission has formally charged Rivetz International Chief Executive Officer Steven K. Sprague for a fraudulent initial coin offering (ICO) 

The SEC has been battling various crypto companies over the years who are conducting fraudulent ICOs. According to the regulatory body, these cases have surged since 2020 and are still rampant up to the present. 

And for its latest “catch”, the SEC has charged Rivetz Corp, Rivetz International SEZC, and Rivetz International for a fraudulent ICO.

According to the Commission, these companies have conducted an illegal and unregistered offering of securities through an initial coin offering. 

Rivetz in hot water

According to the complaint, Rivetz has offered and sold digital assets called “RvT Tokens” to the public, including investors in the United States. It added that Sprague had falsely marketed RvT as an investment opportunity by promoting its “value” to investors. Through this, he was able to raise $18 million in tokens. 

But the biggest problem in this situation was that the offering hadn’t been registered with the SEC, which investors weren’t aware of. 

Fraudulent ICOs

Since the surge of cryptocurrencies, initial coin offerings have also risen, but the real problem here is that fraudulent ICOs are riding in the waves as well. 

For the past few years, SEC has been dealing with illegal initial coin offerings and has successfully charged the people behind them, giving others a clear warning not to follow this illegal activity. 

What makes an ICO illegal is the failure of executives to register the offering to the SEC, which would ensure that policies for an offering are all followed. 

But in 2020, the US Supreme Court has restricted the Commission’s power to seek penalties against ICOs. There were mixed reactions among analysts in the financial sector about this decision, some said that it is only appropriate, but others have sharply criticized it.