Yahya 
Once more securing a court victory against Rivetz Corp. and its CEO, Steven Sprague, the United States Securities and Exchange Commission (SEC) has launched an anti-initial coin offer (ICOs) campaign. September 30: Rivetz, featuring Ethereum-based Rivetz (RvT) tokens from its 2017 ICO, was found by a Massachusetts federal judge to have sold unregistered securities.
Originally suing the now-defunct Sprague Blockchain Hardware Company in September 2021, the SEC had According to the lawsuit, Rivetz had generated $18 million from around 7,200 investors—including a third based in the United States—by selling unregistered RvT tokens. The court disapproved even though Sprague, representing himself, contended the tokens were software products rather than securities.
Judge Mark Mastroianni found the Rivetz tokens fit as securities under the Howey test, which determines whether a transaction qualifies as an investment contract. The judge noted that Rivetz’s comments to investors clearly showed how closely the value of the token was related to the company’s attempts—yet ineffective—to create a mobile security ecosystem.
The court stressed that the coins had no inherent value at the time of the ICO since Rivetz’s future success defined their worth just by itself. This made the tokens speculative investments, fulfilling the Howey test criteria that state an investment contract occurs when profits are expected from the labor of others.
This action corresponds with the SEC’s triumph in another ICO litigation against Opporty International and producer Sergii Grybniak. The consistent victories of the SEC attest to its ongoing efforts to regulate and enforce securities rules in the domain of cryptocurrencies.
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