US Court Rules Rivetz Corp. Violated Securities Laws with ICO
A federal court in Massachusetts recently ruled against Rivetz Corp., a blockchain Security company, for conducting an illegal sale of unregistered securities. The court sided with the Securities and Exchange Commission (SEC), finding Rivetz guilty of violating securities laws by offering and selling unregistered Digital tokens between 2017 and 2018.
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 argued that these tokens were sold as investment Contracts without adhering to the necessary registration requirements.
Despite promoting their tokens as crucial for the platform's Security, Rivetz and its founder failed to deliver on the technological promises made during their initial coin offering (ICO), as highlighted by the SEC. Investors were misled into believing they were purchasing securities linked to Rivetz's future success, further emphasizing the violation of the Securities Act of 1933.
Mango DAO Settles SEC Charges Over Unregistered MNGO Token Sale
In a separate case, Mango DAO reached a settlement with the SEC regarding the unregistered sale of its MNGO tokens by agreeing to pay $700,000. The SEC determined that the MNGO tokens qualified as securities under U.S. law, despite being issued within a Decentralized autonomous organization.
As part of the settlement, Mango DAO agreed to cease trading its MNGO tokens on Exchanges and destroy any remaining tokens. Additionally, the SEC reached a separate settlement with Mango Labs LLC, a developer associated with the DAO, over unregistered broker activities. Both parties resolved the charges without admitting or denying the allegations.
Conclusion
In conclusion, the recent rulings against Rivetz Corp. and Mango DAO highlight the continued regulatory scrutiny surrounding the sale of Digital tokens and securities offerings within the cryptocurrency space. It serves as a reminder for blockchain companies and Token issuers to comply with relevant securities laws and registration requirements to avoid Legal consequences.
For more updates on cryptocurrency news and regulatory developments, stay tuned to Cryptonews for authoritative insights and analysis you can trust.
Last updated:
Author: Hongji Feng
Last updated:
Share
