SEC sends compensation to BitClave ICO investors
The United States Securities and Exchange Commission has sent $4.6 million in compensation to investors in Ethereum-based search engine BitClave's initial coin offering (ICO), the agency said on November 20, 2008.
The payment is part of a settlement BitClave agreed to pay in 2020 after the SEC fined the search engine for failing to register its 2017 ICO as a securities offering.
“The checks are in the mail. We are sending over $4.6M to investors affected by BitClave, PTE Ltd.'s unregistered ICO digital asset securitization. After the announcement and claims process, investors will receive their share of the BitClave Fair Fund,” the SEC said in a post on the X forum.
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In the year In 2020, Bitclave agreed to compensate 9,500 investors who bought into the ICO three years ago for $25.5 million.
BitClave has not admitted wrongdoing, but has committed to returning $25.5 million in proceeds from the ICO and paying nearly $4 million in additional fines.
The payments went into a fraudulent account called the Fair Fund, which the SEC disclosed on Nov. 20.
In the year In 2017, BitClave launched the Consumer Activity Token (CAT), which the SEC argued was a securities offering because investors had reason to believe the CAT would appreciate in value.
According to the CAT White Paper's 2020 SEC filing, “As more service providers join, the amount of CATs required for the same service gradually decreases, corresponding to an increase in CAT value.”
Bitclave agrees to burn 1 billion unallocated CAT tokens and demand specifications.
The SEC has taken a tough regulatory stance on crypto under US President Joe Biden, bringing more than 100 regulatory actions against industry companies.
In July, President-elect Donald Trump promised to “fire” Gary Gensler, who currently heads the SEC.
Trump says he wants to make America the “crypto capital of the world.”
In the year On October 2, SEC enforcement chief Gurbir Grewal stepped down from his role.
As Cointelegraph reports, Trump is considering creating a new White House post dedicated entirely to cryptocurrency policy. The role will be the first crypto-specific White House post.
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