SEC sends reparations to BitClave ICO investors

As a seasoned cryptocurrency investor with over a decade of experience in this wild and unpredictable market, I must admit that news like the one about the SEC sending reparations to investors in BitClave’s ICO brings a mix of emotions. On one hand, it’s always heartening to see justice being served and investors getting their due, especially after such a long wait. On the other hand, it serves as yet another reminder that the crypto market is still largely unregulated, which can lead to potential pitfalls for unsuspecting investors.


According to a statement made on November 20th, the United States Securities and Exchange Commission (SEC) has transferred approximately $4.6 million as compensation to investors involved in the initial coin offering (ICO) of Ethereum-based search engine BitClave.

In 2020, BitClave made a payment as part of an agreement stemming from charges by the Securities and Exchange Commission (SEC). The reason for the charges was that BitClave did not register its Initial Coin Offering (ICO) in 2017 as a securities offering.

The payments are on their way. We’re distributing over $4.6 million to investors who suffered losses due to BitClave PTE Ltd.’s unregistered Initial Coin Offering (ICO) of digital asset securities. Once the notice and claims process is complete, these investors will receive their respective portions from the BitClave Fair Fund, as announced by the SEC on the X platform.

SEC sends reparations to BitClave ICO investors

Back in the year 2020, BitClave made a commitment to refund approximately 9,500 investors who had invested in their Initial Coin Offering (ICO) worth around $25.5 million, which took place three years prior.

In a statement, BitClave did not acknowledge any misconduct, yet pledged to return the $25.5 million amassed during their Initial Coin Offering (ICO) and pay approximately $4 million as additional fines.

The payments were deposited into a trust account known as the Fair Fund, which the Securities and Exchange Commission (SEC) dispersed on November 20th.

2017 saw the introduction of BitClave’s Consumer Activity Token (CAT). The Securatory and Exchange Commission (SEC) contended that this token sale could be considered a securities offering, as potential investors believed that the value of CAT might increase.

As additional service providers integrate into our system, I anticipate that the number of CATs needed for comparable services will progressively diminish, leading to an uptick in the value of each CAT, as suggested by a 2020 SEC filing.

BitClave also agreed to burn one billion uncirculated CAT tokens and request exchange delistings.

Under U.S. President Joe Biden, the Securities and Exchange Commission (SEC) has adopted a firm regulatory approach towards cryptocurrencies, initiating over a hundred regulatory measures against various industry entities.

Last July, President-elect Donald Trump pledged to dismiss Gary Gensler, who is presently leading the Securities and Exchange Commission (SEC).

Trump has also said he wants to make America “the crypto capital of the world.”

On Oct. 2, the SEC’s head of enforcement, Gurbir Grewal, stepped down from his role.

According to CryptoMoon’s report, there are rumors that Trump is contemplating establishing a unique position within the White House solely focused on cryptocurrency policy. This would be the first position of its kind in the White House.

Read More

2024-11-21 00:02