The SEC wins lawsuit against Rivetz Corp and its CEO for selling unregistered securities, exceeding $18 million.

BlockBeats News, on October 1st, according to Cointelegraph, the US SEC won the lawsuit against Rivetz Corp and its CEO Steven Sprague in the ICO-related case. In an order on September 30th, Judge Mark Mastroianni of the Massachusetts Federal Court agreed with the SEC's opinion that Sprague's offering of Rivetz (RvT) Tokens based on Ethereum to the US public through Rivetz constituted an offer and sale of unregistered securities. SEC filed a lawsuit in September 2021 against the now-defunct blockchain hardware company and Sprague, alleging that they sold Rivetz Tokens worth $18 million to over 7,200 investors, with one-third of the investors in the US. Neither the SEC nor Sprague disputed the material facts of the case, but Sprague (representing himself) argued that the Token was a software product and not an investment contract under the SEC's definition of a security in the Howey test. However, the judge wrote, 'From the initial announcement of the ICO through completion, Rivetz and Sprague made statements to potential purchasers that clearly linked the value of RvT Tokens to Rivetz's goal of creating a secure ecosystem for mobile devices.'