RYVYL Joins Fight Against Naked Short Selling
RYVYL Inc. (NASDAQ: RVYL) announced its commitment to investigate suspicious trading patterns of its stock, aiming to combat illegal naked short selling. The company's leadership observed irregular activity meriting a formal investigation into potential violations of Regulation SHO. Under this regulation, broker-dealers must properly mark trades and ensure securities are available to borrow. RYVYL expressed its dedication to shareholder protection and plans to work with regulators to prosecute violators. The company applauds recent efforts by Genius Group Limited in similar endeavors. Further updates will be provided as necessary.
- RYVYL is actively investigating suspicious trading patterns, indicating a proactive approach to shareholder protection.
- The company is aligning its efforts with Genius Group Limited, which may enhance its credibility and effectiveness in combating illegal trading activities.
- The need for investigation suggests potential ongoing issues with naked short selling impacting RYVYL's stock.
- There is uncertainty regarding whether the company's efforts will yield results in identifying or prosecuting violators of Regulation SHO.
SAN DIEGO, CA, Jan. 23, 2023 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ: RVYL) ("RYVYL” or the "Company"), a company that leverages the security of the blockchain and USD-pegged stablecoin technology with near-real-time attestation to conduct payment transactions today announced the Company will join the fight against naked short selling.
After examination of the trading patterns of its common stock, RYVYL Inc. (NASDAQ: RVYL), leadership noticed some suspicious activity meriting a formal investigation. The Company will continue to review past and present trades for potential violations, specifically with regards to Regulation SHO. Rule 200(g) of Regulation SHO requires Broker-Dealers (BDs) to mark each trade as "Long", "Short", or "Short Exempt" – there are no other options. Further, Rule 203(b)(1) of Regulation SHO requires BDs to "locate" the underlying security and ensure that it is borrowed, reasonably available to be borrowed, or entered into a bona fide arrangement to be borrowed. Any sale that does not follow these guidelines is defined as an illegal "naked short". Violations of Rule 203(b)(1) of Regulation SHO have been prosecuted by the SEC recently - for example, see here:
Litigation Release - SEC Charges Broker-Dealer with Order Execution Violations
Filed Complaint – SEC v. BTIG, LLC
SEC Obtains Final Judgment Agains BTIG, LLC Administrative Proceeding – SEC Charges Chicago-Based Broker-Dealer with Violations of Regulation SHO
RYVYL is taking the principle of protecting shareholders seriously. The Company applauds efforts made in recent days by the Genius Group Limited and is taking steps to follow the same efforts in order to investigate, identify and work with regulators to prosecute any naked short violators trading in RYVYL stock. Additional information will follow as appropriate.
#CEOFightBack
About RYVYL
RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business and peer-to-peer payment transactions around the globe. By leveraging unique blockchain security and USD-pegged stablecoin technology with near real-time attestation, RYVYL is reinventing the future of financial transactions using its coyni® stablecoin platform as a transactional foundation. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants and consumers around the globe. www.ryvyl.com
Cautionary Note Regarding Forward-Looking Statements
This press release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company’s current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding continuing to review past and present trades for potential violations and taking steps to follow Genius Group Limited’s same efforts to investigate, identify and work with regulators to prosecute any naked short violators trading our stock. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that our review and efforts will not enable us to identify violations of Regulation SHO involving our shares or, if identified, that regulators will not take action with regard to such violations. Other risk factors affecting the Company are discussed in detail in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
Investor Relations Contact:
Mark Schwalenberg
MZ Group - MZ North America
312-261-6430
RVYL@mzgroup.us
www.mzgroup.us
FAQ
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