RYVYL (RVYL) Joins Fight Against Naked Short Selling

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 ViolationsFiled Complaint – SEC v. BTIG, LLCSEC 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.

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