SEC Distributes $4.6 Million to Investors Suffering Losses from BitClave ICO

The U.S. Securities and Exchange Commission (SEC) has transferred $4.6 million in compensation to investors who suffered losses from the ICO of the Ethereum-based search tool BitClave, after the company was charged with violating U.S. securities regulations. This payment is part of the settlement that BitClave signed in 2020, after the SEC accused the company of not registering its 2017 ICO as a securities offering. The SEC stated: "Checks are being mailed. We will be distributing over $4.6 million to investors harmed by BitClave, PTE Ltd.'s unregistered digital asset securities offering. After a notice and claims process, investors will receive their share from the BitClave Fair Fund." In 2020, BitClave agreed to refund approximately 9,500 investors who participated in the company's $25.5 million ICO three years earlier. Although not admitting wrongdoing, BitClave committed to returning the full amount raised from the ICO and paying an additional $4 million in penalties. The payments were transferred to an escrow account called the "Fair Fund," and the SEC has proceeded with the distribution of these funds on November 20. In 2017, BitClave issued the Consumer Activity Token (CAT), which the SEC considered a securities offering because investors had a reasonable expectation that the value of CAT would increase. According to the 2020 filing with the SEC, the CAT whitepaper stated that "as more service providers join, the number of CAT required per service will decrease, corresponding to an increase in the value of CAT." In addition to refunding investors, BitClave also agreed to burn 1 billion unissued CAT tokens and request their delisting from trading platforms. Under the leadership of President Joe Biden, the SEC has taken a tough stance on the crypto industry, taking over 100 enforcement actions against companies in this sector. In July, former President Donald Trump announced that he would "fire" Gary Gensler and expressed a desire to make the U.S. the "cryptocurrency capital of the world." Join Telegram: https://t.me/tapchibitcoinvn Twitter (X): https://twitter.com/tapchibtc_io TikTok: https://www.tiktok.com/@tapchibitcoin Annie According to Cointelegraph