The post The SEC sends $4.6m to investors involved in BitClave ICO appeared on BitcoinEthereumNews.com.

The U.S Securities and Exchange Commission distributed funds amounting to $4.6 million to investors involved in BitClave’s initial coin offering. The SEC announced in a recent filing that it has authorized the transfer of more than $4.6 million to “harmed investors” in accordance with the return plan for BitClave’s Ethereum-based search engine ICO. “After a notice & claims process, investors will now be receiving their share of the BitClave Fair Fund,” the SEC wrote in an X post. Through its brief 32-second ICO, BitClave sold out its Consumer Activity Token to 9,500 investors and raised around $25.5 million. In 2020, the SEC sued crypto startup BitClave over allegations that it had violated the securities law by failing to register its ICO as a digital asset security. BitClave did not admit to any wrongdoings, but it did reach a settlement with the SEC. As part of the settlement deal, BitClave agreed to return the entirety of its ICO sales of $25.5 million. It was also required to pay $3.4 million in pre-judgment interest as well as a $400,000 fine. Additionally, the startup agreed to destroy its 1 billion uncirculated CAT token supply and delist the token from exchanges. In addition to paying damages, the SEC ordered BitClave to establish a Fair Fund to facilitate returns for the investors who participated in the ICO. According to the filing, investors requesting a return had to file claims before the deadline that was set for Aug. 2023. The notifications on claim statuses were sent out in March this year. BitClave vowed to contribute $29 million to the SEC’s Fair Fund for investor compensation. However by Feb. 2023, BitClave only managed to shill out $12 million for investor compensation, according to information on the SEC document detailing BitClave’s Fair Fund. BitClave’s case is just one…

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Filed under: News - @ November 21, 2024 11:21 am