SEC Wins Case Against Rivetz Corp Over ICO

The US Securities and Exchange Commission achieved another victory in a case against Rivetz Corp and its CEO, Steven Sprague, regarding an ICO. In a recent ruling, a Massachusetts federal court judge agreed with the SEC's claim that Rivetz sold unregistered securities through its RvT token offering to US investors. Despite Sprague's argument that the token was a software product, the judge found that statements made by Rivetz tied the token's value to the creation of a security ecosystem. The court determined that the token's worth was linked to Rivetz's efforts, meeting the criteria of an investment contract under the Howey test. The SEC was directed to propose injunctive and monetary relief by a specified date. This ruling follows a similar case where the SEC prevailed against Opporty International for selling unregistered securities through an ICO.