Payment processor RYVYL Inc. and its two founders agreed to settle an SEC lawsuit alleging they misled investors by claiming the company used blockchain technology and digital tokens for transactions, when it actually resold traditional credit card processing services primarily to cannabis dispensaries and other high-risk merchants.
Fredi Nisan and Benzion Errez—RYVYL’s former CEO and chairman, respectively—violated federal securities laws by making false statements in public filings, according to the Securities and Exchange Commission’s complaint filed Monday in the US District Court for the Southern District of California.
Nisan and Errez each agreed to pay a roughly $230,000 civil penalty ...