The U.S. Securities and Exchange Commission (SEC) has confirmed the distribution of over $4.6 million to investors impacted by the unregistered initial coin offering (ICO) of blockchain startup BitClave.
The funds will be paid out from the BitClave Fair Fund following a notice and claims process.
“The checks are in the mail. We are sending out more than $4.6M to investors harmed by BitClave, PTE Ltd.’s unregistered ICO of digital asset securities,” the SEC shared in a post on X.
BitClave was a blockchain-based startup that wanted to change the digital advertising industry by creating a decentralized search engine that would eliminate intermediaries like Google AdWords, allowing businesses to connect directly with consumers.
To raise funds, the project launched an ICO in 2017, selling its native Consumer Activity Token (CAT). The event was a massive success, reportedly raising more than $25 million from nearly 9,500 investors in less than a minute.
However, BitClave’s dream soon crumbled to dust when, in 2020, the SEC sued the project, alleging its ICO had violated federal securities laws. The company subsequently settled the charges, agreeing to pay back all the money raised but not admitting wrongdoing.
Adding interest and penalties, the amount due to the SEC was about $29 million, earmarked to be returned to investors.
On December 1, 2022, the agency’s Division of Enforcement published a Notice of Proposed Plan of Distribution for the Fair Fund. It approved the proposal, which included a detailed methodology for distributing the fund and any accrued interest to investors, on February 9, 2023.
Investors eligible for compensation were required to submit claims by August 2023, and the SEC notified them of the acceptance or denial of their claims in March 2024.
Following the fund administrator’s submission of a payment file, the SEC reviewed and accepted it. According to the latest filing, the regulatory body has authorized the transfer of $4.6 million from the Fair Fund to an escrow account, which will be distributed according to the approved plan.
Interestingly, while BitClave committed to paying $29 million to the SEC’s fund as part of the settlement, the company had apparently paid only $12 million. The money set to be released by the regulator means there will still be another $7.4 million remaining, and there is no current information about what will happen to it.
The post SEC Approves $4.6M Payment to Investors Affected by BitClave’s Crypto ICO appeared first on CryptoPotato.
The funds will be paid out from the BitClave Fair Fund following a notice and claims process.
BitClave’s $29 Million ICO Settlement
“The checks are in the mail. We are sending out more than $4.6M to investors harmed by BitClave, PTE Ltd.’s unregistered ICO of digital asset securities,” the SEC shared in a post on X.
BitClave was a blockchain-based startup that wanted to change the digital advertising industry by creating a decentralized search engine that would eliminate intermediaries like Google AdWords, allowing businesses to connect directly with consumers.
To raise funds, the project launched an ICO in 2017, selling its native Consumer Activity Token (CAT). The event was a massive success, reportedly raising more than $25 million from nearly 9,500 investors in less than a minute.
However, BitClave’s dream soon crumbled to dust when, in 2020, the SEC sued the project, alleging its ICO had violated federal securities laws. The company subsequently settled the charges, agreeing to pay back all the money raised but not admitting wrongdoing.
Adding interest and penalties, the amount due to the SEC was about $29 million, earmarked to be returned to investors.
Notice and Claims Process
On December 1, 2022, the agency’s Division of Enforcement published a Notice of Proposed Plan of Distribution for the Fair Fund. It approved the proposal, which included a detailed methodology for distributing the fund and any accrued interest to investors, on February 9, 2023.
Investors eligible for compensation were required to submit claims by August 2023, and the SEC notified them of the acceptance or denial of their claims in March 2024.
Following the fund administrator’s submission of a payment file, the SEC reviewed and accepted it. According to the latest filing, the regulatory body has authorized the transfer of $4.6 million from the Fair Fund to an escrow account, which will be distributed according to the approved plan.
Interestingly, while BitClave committed to paying $29 million to the SEC’s fund as part of the settlement, the company had apparently paid only $12 million. The money set to be released by the regulator means there will still be another $7.4 million remaining, and there is no current information about what will happen to it.
The post SEC Approves $4.6M Payment to Investors Affected by BitClave’s Crypto ICO appeared first on CryptoPotato.
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