SEC v. RYVYL, No. 3:26-cv-02672, Southern District of California — Press Release
raw: RYVYL, Inc.; Fredi Nisan; Benzion Errez
RYVYL, Inc.; Fredi Nisan; Benzion Errez, No. 3:26-cv-02672
RYVYL, Inc., and its founders Fredi Nisan and Benzion Errez defrauded investors by falsely claiming to develop proprietary blockchain-based payment technology when they merely resold third-party credit card and ACH services and concealed that most transactions involved high-risk merchants like cannabis dispensaries, leading to permanent injunctions, $230,464 civil penalties each, and five-year officer/director bans.
The SEC alleged that RYVYL, Inc., and its founders Fredi Nisan and Benzion Errez misled investors from October 2020 to May 2025 by falsely portraying the company as a blockchain fintech firm with proprietary technology, when in fact it resold third-party credit card and ACH processing services and had no blockchain infrastructure. The defendants also concealed that a substantial majority of their transactions involved high-risk merchants, including cannabis dispensaries, violating antifraud and reporting provisions of federal securities laws. Without admitting or denying the allegations, they consented to permanent injunctions, civil penalties of $230,464 each, and a five-year ban from serving as officers or directors of public companies.
The U.S. Securities and Exchange Commission filed a settled enforcement action against RYVYL, Inc., and its founders, former CEO Fredi Nisan and former chairman Benzion Errez, for orchestrating a fraud through false and misleading disclosures in public filings from October 2020 to May 2025. The defendants falsely claimed RYVYL developed and operated proprietary blockchain-based payment solutions that settled all transactions within its ecosystem, when in reality the company merely resold credit card and ACH processing services from third parties and possessed no blockchain technology whatsoever. They also deliberately concealed that a substantial majority of RYVYL’s transactions involved high-risk merchants, such as cannabis dispensaries, further misleading investors about the nature and risk profile of the business. Without admitting or denying the allegations, the defendants consented to final judgments that permanently enjoin them from violating Sections 17(a) and 10(b) of the federal securities laws and Rule 10b-5, as well as enjoining RYVYL from violating reporting requirements under Section 13(a) and related rules. Nisan and Errez each agreed to pay $230,464 in civil penalties and are barred for five years from serving as officers or directors of any public company. The SEC’s investigation was led by Marc J. Blau and trial counsel Donald W. Searles under Stephen Kam’s supervision in the Los Angeles Regional Office. The case was resolved without trial, with court approval pending on the consent judgments.
Extracted insights
- $230K $230,464 $100K–$1M
- company blockchain-based technology
- company blockchain technology
- company cutting edge financial technology company
- person donald w. searles
- company innovative blockchain-based payment solutions
- person marc j. blau
- company proprietary blockchain technology
- agency Securities and Exchange Commission
- person settled action
- person stephen kam
- Securities and Exchange Commission Filed Settled Action
- Securities and Exchange Commission Alleges RYVYL, Nisan, and Errez defrauded the investing public
- RYVYL Falsely Depict Cutting Edge Financial Technology Company
- RYVYL Developed, Marketed and Sold Innovative Blockchain-Based Payment Solutions
- RYVYL Served as Settlement Engine Blockchain-Based Technology
- RYVYL Reselling Credit Card or ACH Processing Services Other Companies
- RYVYL Never Processed Transactions Blockchain Technology
- RYVYL Never Possessed Proprietary Blockchain Technology
- RYVYL Never Told Public Substantial Majority of Transactions Involved High-Risk Merchants
- RYVYL, Nisan, and Errez Consented to Entry of Final Judgments Permanently Enjoin Violating Antifraud Provisions
- RYVYL, Nisan, and Errez Consented to Entry of Final Judgments Prohibit Nisan and Errez from Serving as Officer or Director
- SEC Handled Investigation Marc J. Blau
- Marc J. Blau Assisted by Donald W. Searles
- Marc J. Blau Under Supervision of Stephen Kam
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26541 / April 28, 2026Securities and Exchange Commission v. RYVYL, Inc., et al. No. 3:26-cv-02672 (S.D. Cal. filed Apr. 27, 2026)SEC Files Settled Action Against Financial Technology Company and its Founders for Alleged Fraudulent DisclosuresOn April 27, 2026, the Securities and Exchange Commission filed a settled action against RYVYL, Inc., and its two founders, former CEO, Fredi Nisan, and former chairman of the board Benzion Errez, for their respective roles in making alleged false disclosures in RYVYL’s public filings.According to the SEC’s complaint, filed in U.S. District Court for the Southern District of California, beginning in October 2020, RYVYL, Nisan, and Errez defrauded the investing public by falsely depicting RYVYL in its public filings with the SEC as a cutting edge financial technology company that developed, marketed and sold “innovative blockchain-based payment solutions” and that its “proprietary blockchain-based technology” served as the settlement engine for all transactions within its ecosystem. The complaint alleges that, in reality, RYVYL’s actual business was reselling credit card or ACH processing services of other companies and RYVYL never processed any transactions through a blockchain technology, as it claimed in its public filings, nor did it possess any proprietary blockchain technology. The complaint further alleges that, until May 2025, RYVYL never told the public that a substantial majority of its transactions involved high-risk merchants, such as cannabis dispensaries.Without admitting or denying the allegations in the SEC’s complaint, RYVYL, Nisan, and Errez consented to the entry of final judgments, subject to court approval, that would permanently enjoin each defendant from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder, as well as permanently enjoin RYVYL from violating Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, 13a-13 thereunder and Nisan and Errez from aiding and abetting such violations; impose civil penalties of $230,464 against Nisan and Errez; and prohibit Nisan and Errez for five years from serving as an officer or director of a public company.The SEC’s investigation was handled by Marc J. Blau with the assistance of trial counsel Donald W. Searles, under the supervision of Stephen Kam of the SEC’s Los Angeles Regional Office.
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26541 / April 28, 2026Securities and Exchange Commission v. RYVYL, Inc., et al. No. 3:26-cv-02672 (S.D. Cal. filed Apr. 27, 2026)SEC Files Settled Action Against Financial Technology Company and its Founders for Alleged Fraudulent DisclosuresOn April 27, 2026, the Securities and Exchange Commission filed a settled action against RYVYL, Inc., and its two founders, former CEO, Fredi Nisan, and former chairman of the board Benzion Errez, for their respective roles in making alleged false disclosures in RYVYL’s public filings.According to the SEC’s complaint, filed in U.S. District Court for the Southern District of California, beginning in October 2020, RYVYL, Nisan, and Errez defrauded the investing public by falsely depicting RYVYL in its public filings with the SEC as a cutting edge financial technology company that developed, marketed and sold “innovative blockchain-based payment solutions” and that its “proprietary blockchain-based technology” served as the settlement engine for all transactions within its ecosystem. The complaint alleges that, in reality, RYVYL’s actual business was reselling credit card or ACH processing services of other companies and RYVYL never processed any transactions through a blockchain technology, as it claimed in its public filings, nor did it possess any proprietary blockchain technology. The complaint further alleges that, until May 2025, RYVYL never told the public that a substantial majority of its transactions involved high-risk merchants, such as cannabis dispensaries.Without admitting or denying the allegations in the SEC’s complaint, RYVYL, Nisan, and Errez consented to the entry of final judgments, subject to court approval, that would permanently enjoin each defendant from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder, as well as permanently enjoin RYVYL from violating Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, 13a-13 thereunder and Nisan and Errez from aiding and abetting such violations; impose civil penalties of $230,464 against Nisan and Errez; and prohibit Nisan and Errez for five years from serving as an officer or director of a public company.The SEC’s investigation was handled by Marc J. Blau with the assistance of trial counsel Donald W. Searles, under the supervision of Stephen Kam of the SEC’s Los Angeles Regional Office.