The checks for BitClave investors are now in the mail. With this short post on Twitter/X by the Securities and Exchange Commission (SEC), investors of the controversial 2017 ICO offering can now start collecting what is rightfully theirs. The $4.6 million check is for investors in BitClave’s 2017 ICO offering with unregistered digital assets securities.
Related Reading: Social Media Breach Hits Giggle Academy, Binance Founder Reacts
This approved settlement amount was agreed upon in 2020, and it’s only this November 20th that the agency has confirmed the availability of funds. After the standard Notice & Claims process, the qualified investors can now receive their portion of the BitClave Fair Fund.
SEC Approves $4.6 Million Fund As Part Of Settlement
According to document Release No. 101653, published on November 19, 2024, BitClave’s investors were paid out the $4.6 million amount. This document notes that the agency has set aside $4,614,679.81 to assist the affected investors.
The settlement fund shall be sourced from the Fair Fund and transferred to its escrow account at the Huntington National Bank, N.A., for disposition and distribution. According to the SEC, the checks are now in transit, and funds will become available after the Notice & Claims procedures.
An ICO With Unregistered Securities
BitClave’s ICO in 2017 generated a lot of attention and excitement, raising $25.5 million in 32 seconds. The subject of the ICO was the Consumer Activity Token (CAT), which was later classified as an unregistered security. According to the SEC, thousands of investors were encouraged to invest in the tokens with the expectation that they would increase in price.
Image: Bloomingbit
Under the settlement’s rules, the company will refund the raised money and pay $4 million in interest and fines. During the settlement process, John Deaton accused the SEC of relying on laws introduced in 1933.
As a result, the agency established the Fair Fund to ensure that the affected investors will get their share of the proceeds. The SEC initiated the claims submission, with the filing ending in August 2023. The eligible investors received their notices in March 2024.
Related Reading: Bitcoin Gains VanEck’s Official Support As Strategic Reserve
BitClave Asked To Destroy Tokens, Pay Penalties
BitClave pledged to give back $29 million as part of the settlement, comprising fines of $4 million and the $25.5 million raised during the ICO. The firm has also called on crypto exchanges to delist all unissued coins and promises to burn them.
In February 2024, the SEC reported that the crypto industry forwarded only $12 million to the Fair Fund but left $7.4 million in uncertainty because it failed to forward that amount. The agency and the fund administrator didn’t provide additional comments on the method through which the remaining funds will be collected.
Featured image from DALL-E, chart from TradingView
The checks for BitClave investors are now in the mail. With this short post on Twitter/X by the Securities and Exchange Commission (SEC), investors of the controversial 2017 ICO offering can now start collecting what is rightfully theirs. The $4.6 million check is for investors in BitClave’s 2017 ICO offering with unregistered digital assets securities.
Related Reading: Social Media Breach Hits Giggle Academy, Binance Founder Reacts
This approved settlement amount was agreed upon in 2020, and it’s only this November 20th that the agency has confirmed the availability of funds. After the standard Notice & Claims process, the qualified investors can now receive their portion of the BitClave Fair Fund.
SEC Approves $4.6 Million Fund As Part Of Settlement
According to document Release No. 101653, published on November 19, 2024, BitClave’s investors were paid out the $4.6 million amount. This document notes that the agency has set aside $4,614,679.81 to assist the affected investors.
The settlement fund shall be sourced from the Fair Fund and transferred to its escrow account at the Huntington National Bank, N.A., for disposition and distribution. According to the SEC, the checks are now in transit, and funds will become available after the Notice & Claims procedures.
An ICO With Unregistered Securities
BitClave’s ICO in 2017 generated a lot of attention and excitement, raising $25.5 million in 32 seconds. The subject of the ICO was the Consumer Activity Token (CAT), which was later classified as an unregistered security. According to the SEC, thousands of investors were encouraged to invest in the tokens with the expectation that they would increase in price.
Image: Bloomingbit
Under the settlement’s rules, the company will refund the raised money and pay $4 million in interest and fines. During the settlement process, John Deaton accused the SEC of relying on laws introduced in 1933.
As a result, the agency established the Fair Fund to ensure that the affected investors will get their share of the proceeds. The SEC initiated the claims submission, with the filing ending in August 2023. The eligible investors received their notices in March 2024.
Related Reading: Bitcoin Gains VanEck’s Official Support As Strategic Reserve
BitClave Asked To Destroy Tokens, Pay Penalties
BitClave pledged to give back $29 million as part of the settlement, comprising fines of $4 million and the $25.5 million raised during the ICO. The firm has also called on crypto exchanges to delist all unissued coins and promises to burn them.
In February 2024, the SEC reported that the crypto industry forwarded only $12 million to the Fair Fund but left $7.4 million in uncertainty because it failed to forward that amount. The agency and the fund administrator didn’t provide additional comments on the method through which the remaining funds will be collected.
Featured image from DALL-E, chart from TradingView
