The SEC has announced the distribution of millions of dollars to investors affected by the collapse of BitClave, an online advertising blockchain startup. The reimbursement amount is over $4.6 million.
The payments include principal amounts and interest for eligible investors.
BitClave ICO Raised over $25 million in 2017
In 2020, the SEC filed a lawsuit against BitClave, alleging that the firm had been in violation of federal securities laws while conducting its $25.5 million fund raise back in 2017.
BitClave, the startup, successfully launched its offering called Consumer Activity Token (CAT) through an initial coin offering or ICO to attract thousands of investors. The startup managed to raise targeted funds within a minute.
The SEC established the BitClave Fair Fund to compensate harmed investors. The agency said today that it has delivered $4.6 million to participants in the 2017 BitClave ICO.
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. After a notice & claims process, investors will now be receiving their share of the BitClave Fair Fund. https://t.co/VSmrObLZUa pic.twitter.com/zUdHRkAoS2
— U.S. Securities and Exchange Commission (@SECGov) November 20, 2024
“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 wrote on X (formerly Twitter)
SEC filings reveal that BitClave agreed to contribute close to $29 million to the fund. However, until February 2023, only $12 million had been contributed.
Eligible investors needed to file their claims by August 2023. The SEC finally closed the review process and informed claimants about their eligibility status in March. This indicates a significant stride forward for restitutions to those aggrieved by the fallouts of the ICO.
Major Changes Expected under Trump’s Presidency
Despite approving Bitcoin ETFs, the US regulator has notoriously clamped down on the American crypto space. But the agency is set to have a transformative change once Donald
Trump assumes office in January 2025.
According to recent reports, SEC Chair Gary Gensler is likely to tender his resignation after Thanksgiving. Gensler was criticized by the cryptocurrency community for taking an enforcement-centric approach to regulating digital assets.
According to BeInCrypto’s earlier reports, Trump is considering three pro-crypto candidates to replace him. Scott Bessent, a well-known crypto advocate, is also emerging as a leading contender for Treasury Secretary.
Trump reportedly plans to establish a permanent crypto advisor role in the White House. That role would be a liaison between the Congress, the regulators, and the administration regarding cryptocurrency policy.
