SEC to Return $4.6 Million to Bitclave ICO Victims

The SEC announced that it will distribute millions of dollars to investors who were harmed by the collapse of the online advertising blockchain startup Bitclave. The compensation amount exceeds $4.6 million. The payout includes principal and interest for eligible investors. Bitclave ICO raised over $25 million in 2017 In 2020, the SEC filed a lawsuit against Bitclave, accusing the company of violating federal securities laws during its $25.5 million fundraising campaign in 2017. The startup had launched a Consumer Activity Token (CAT) through an initial coin offering (ICO). Thousands of investors participated, and the target funds were raised within a minute. The Bitclave Fair Fund was established by the SEC to compensate affected investors. According to today's statement, over $4.6 million was distributed to participants of Bitclave's 2017 ICO. "Checks have been mailed. We are distributing over $4.6 million to investors harmed by the unregistered digital asset securities ICO of Bitclave, PTE Ltd.," the SEC wrote on X (formerly Twitter). According to SEC documents, Bitclave had agreed to pay nearly $29 million to the fund, but only $12 million has been paid as of February 2023. Eligible investors had to submit claims by August 2023. The SEC has completed the review process and notified claimants of their eligibility status in March, an important step in providing compensation to those affected by the ICO fallout. Significant changes expected during Trump's presidency Despite approving Bitcoin ETFs, the SEC has maintained strict control over the U.S. cryptocurrency market. However, the agency is expected to undergo significant changes after Donald Trump, the president-elect, takes office in January 2025. Recent reports suggest that SEC Chair Gary Gensler may announce his resignation after Thanksgiving. Gensler has faced criticism from the cryptocurrency community for his enforcement-focused stance on digital assets. As previously reported by BeInCrypto, Trump is considering three pro-cryptocurrency candidates to replace Gensler. Scott Bessent, known as a cryptocurrency advocate, is also emerging as a leading candidate for Treasury Secretary. Additionally, it is reported that Trump plans to establish a permanent cryptocurrency advisor role within the White House. This position will serve as a liaison on cryptocurrency policy between Congress, regulatory agencies, and the administration.