The Securities and Exchange Commission has charged Rivetz Corp., its subsidiary in Cayman’s special economic zone Rivetz International SEZC, and the companies’ founder and CEO Steven Sprague, with conducting an illegal, unregistered offering of securities through an initial coin offering.
The token sale between July and September 2017 raised the equivalent of US$18 million from investors, who bought the digital asset with cryptocurrency ether. According to the securities regulator, about 30% of the 5,200 investors were American.
The SEC also claimed that the proceeds were used to pay Sprague a $1 million bonus and loan Sprague $2.5 million, which he used to purchase a house in the Cayman Islands that he then leased back to Rivetz International.
Special economic zone company Rivetz International was formally established under Cayman Islands law on 22 June 2017. In September 2020, Cayman Enterprise City sued Rivetz International and Rivetz Corp. for the non-payment of $71,460 in licence fees.
Rivetz is a now-defunct technology company that purportedly developed software to improve the security of digital devices.
According to the SEC complaint, filed in Massachusetts, Sprague claimed in a White Paper, published in June 2017, that Rivetz was building a “Global Attestation and Identity Network, powered by the Rivetz Token (RvT)” that aimed “to improve the security of devices on which we rely” and “to record and verify the health and integrity of the device using an RvT and...
Read Full Story: https://www.caymancompass.com/2021/09/10/sec-sues-rivetz-over-cayman-based-us18-million-token-sale/
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