SEC Accuses Rivetz of Laundering Over $18 Million
The US Securities and Exchange Commission (SEC) accused Rivetz of an illegal offering of securities worth approximately $18 million between July and September 2017 from more than 7,200 investors.
The September 8 SEC complaint featured defendants Rivetz Corp., founder Stephen Sprague and a subsidiary of Rivetz International. The company has posted an initial offering of the RvT token. And the defendants touted the value of RvT tokens as an investment that can be bought and sold on the secondary market, despite the product not working at the time of the offer.
Investors used Ethereum to buy RvT tokens. Following the initial sale, the SEC claims that Rivetz and Sprague have liquidated all ether received through Rivetz International.
The SEC claims the money was used for dubious financial transactions, like giving Sprague a $1 million bonus and a separate $2.5 million loan, which he used to buy a house in the Cayman Islands. A little later, Sprague rented this house to Rivetz Int’l.
If the defendants are found guilty, they will have to return all the wrongfully obtained profits and pay a fine.