RYVYL Inc, its chief executive officer, Fredi Nisan and its chairman of the board, Benzion Errez have agreed to the entry of final judgments in the lawsuit brought against them by the Securities and Exchange Commission (SEC).

Without admitting or denying the allegations in the SEC’s complaint, RYVYL, Nisan, and Errez consented to the entry of final judgments 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 complaint, submitted on April 27, 2026, at the California Southern District Court, alleges that RYVYL, Nisan and Errez defrauded the investing public by falsely depicting RYVYL in its public filings with the Commission as a cutting edge “financial technology company that develops, markets, and sells innovative blockchain-based payment solutions” and that its “proprietary blockchain-based technology serves as the settlement engine for all transactions within [its] ecosystem.”

RYVYL’s public filings also detailed its use of a digital “token” to facilitate credit card transactions with merchants using its services.

The complaint further alleges that these descriptions of the company’s business were materially false and misleading. RYVYL’s actual business was reselling credit card or ACH processing services of other companies to high-risk merchants, such as cannabis dispensaries. RYVYL never processed any transactions through a blockchain as it claimed in its public filings, nor did it possess any proprietary blockchain technology. Despite specifically describing its use in transactions, RYVYL neither sold nor had a functional digital token.

Moreover, until its May 20, 2025 quarterly filing, RYVYL never publicly disclosed that a substantial majority of its transactions involved high-risk merchants, such as cannabis dispensaries, which are disfavored customers by most major credit companies due to the questionable legality of their businesses under federal law.

The final judgments are subject to approval by the Court.