- BitClave investors receive $4.6 million repayment after SEC settlement over 2017 ICO.
- SEC’s action against BitClave highlights broader crypto enforcement efforts under the Biden administration.
- BitClave committed to burning unissued tokens and delisting CAT to comply with SEC settlement.
The US Securities and Exchange Commission has started refunding $4.6 million to investors collected from the 2017 BitClave ICO swindle. This move comes after they agreed to a $2020 settlement. The SEC established the BitClave Fair Fund to ensure that it compensates investors who suffered losses and uses such funds for the repayments.
Details of the Settlement
BitClave conducted its ICO exercise in 2017. In addition, it issued and placed its Consumer Activity Token (CAT) with thousands of investors in 32 seconds raising $25.5 million. The SEC accused the company of running an unlawful securities business. In the agency’s understanding, the ICO was just inviting investors to invest in CAT tokens with an aim of advancing gains in the future.
As per the 2020 settlement, BitClave has left itself to refund the entire amount that was collected and pay $4 million in fines and interest. The Irvine-based company did not defend or even acknowledge the accusations of the SEC. However, it pled guilty and decided to repay $29 million. This sum includes the ICO funds and the additional penalties.
Compensation Process for Investors
The claims submission period for affected investors closed in August 2023. The SEC has now confirmed that the eligible investors have received their payments. The SEC assured the public that the checks are in the mail and the funds are being distributed.
Additionally, BitClave committed to burning 1 billion unissued CAT tokens and to asking exchanges to delist the token. These measures are part of the company’s effort to comply with the settlement.
Concerns Over Fund Remittance
Despite the settlement, there are concerns about the outstanding balance. By February 2023, BitClave had only remitted $12 million to the Fair Fund, leaving $7.4 million unaccounted for. Neither the SEC nor the fund administrator has provided details on how this remaining amount will be collected.
The SEC’s action against BitClave is part of its broader enforcement efforts within the cryptocurrency industry. Under the Biden administration, over 100 enforcement actions have been taken against crypto companies for unregistered ICOs. This case also highlights the SEC’s stance on digital assets, with many of them falling under securities laws.
The post BitClave Investors Receive $4.6 Million in SEC Repayments After 2020 Settlement appeared first on Crypto News Land.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed