SEC Charges Crypto Startup Rivetz With Illegal ICO Sale

Rivetz Failed to Register With SEC

Rivetz was founded in 2015 with the stated goal of creating a digital key management system based on trusted hardware.

According to the SEC, Rivetz sold digital assets called “RvT tokens” to investors in the U.S. and elsewhere through an ICO beginning in 2017. However, Rivetz was not registered with the SEC.

The SEC noted that RvT sales raised $18 million in cryptocurrency from investors in this way and that it had promoted the RvT tokens by promising future value and availability on exchanges.

Rivetz Tokens Had No Utility

The SEC went on to criticize RVT’s lack of utility, stating “buyers could not purchase any goods and services using RvT tokens, and the tokens had no other use in any Rivetz product or service.”

Furthermore, the firm spent or redeemed all of the crypto assets that the sale had raised by March 2018. Some of those funds were used by founder Steven Sprague on personal expenses.

Rivetz is now defunct. The company’s web presence seems to have ended sometime in 2020 when its website went offline. Its Twitter profile was last updated in September 2019.

Source : cryptobriefing.com