SEC Distributes $4.6 Million to BitClave ICO Investors After Lawsuit
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 2017In 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 launched its Consumer Activity Token (CAT) through an initial coin offering (ICO) that attracted thousands of investors. The targeted funds were raised in under a minute.
The BitClave Fair Fund was established by the SEC to compensate affected investors. According to today’s statement, it has now distributed $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,” the SEC wrote on X (formerly Twitter)
According to SEC filings, BitClave agreed to pay nearly $29 million to the fund. However, only $12 million had been contributed as of February 2023.
Eligible investors were required to file claims by August 2023. The SEC completed the review process and notified claimants of their eligibility status in March. This marks a significant step in providing restitution to those impacted by the ICO’s fallout.
Major Changes Expected Under Trump’s Presidency
Despite its approval of Bitcoin ETFs, the SEC has notoriously maintained a harsh grip on the US crypto market. However, the agency is poised to undergo significant changes after President-elect Donald Trump takes office in January 2025.
Recent reports suggest SEC Chair Gary Gensler could announce his resignation following Thanksgiving. Gensler has faced criticism from the cryptocurrency community for his enforcement-focused stance on digital assets.
As BeInCrypto reported earlier, Trump is considering three pro-crypto candidates to replace him. Scott Bessent, a known crypto advocate, is also emerging as a leading contender for Treasury Secretary.
Additionally, Trump is reportedly planning to establish a permanent crypto advisor role within the White House. This position would serve as a liaison between Congress, regulators, and the administration on cryptocurrency policy.
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