The U.S. Securities and Exchange Commission (SEC) has confirmed the distribution of over $4.6 million to investors impacted by the unregistered initial coin offering (ICO) of blockchain startup BitClave.<\/p>\n
The funds will be paid out from the BitClave Fair Fund following a notice and claims process.<\/p>\n
\u201cThe checks are in the mail. We are sending out more than $4.6M to investors harmed by BitClave, PTE Ltd.\u2019s unregistered ICO of digital asset securities,\u201d the SEC shared in a post<\/a> on X.<\/p>\n BitClave was a blockchain-based startup that wanted to change the digital advertising industry by creating a decentralized search engine that would eliminate intermediaries like Google AdWords, allowing businesses to connect directly with consumers.<\/p>\n To raise funds, the project launched an ICO in 2017, selling its native Consumer Activity Token (CAT). The event was a massive success, reportedly raising more than $25 million from nearly 9,500 investors in less than a minute.<\/p>\n However, BitClave\u2019s dream soon crumbled to dust when, in 2020, the SEC sued the project, alleging its ICO had violated federal securities laws. The company subsequently settled<\/a> the charges, agreeing to pay back all the money raised but not admitting wrongdoing.<\/p>\n Adding interest and penalties, the amount due to the SEC was about $29 million, earmarked to be returned to investors.<\/p>\n On December 1, 2022, the agency\u2019s Division of Enforcement published a Notice of Proposed Plan of Distribution for the Fair Fund. It approved the proposal, which included a detailed methodology for distributing the fund and any accrued interest to investors, on February 9, 2023.<\/p>\n Investors eligible for compensation were required to submit claims by August 2023, and the SEC notified them of the acceptance or denial of their claims in March 2024.<\/p>\n Following the fund administrator\u2019s submission of a payment file, the SEC reviewed and accepted it. According to the latest filing<\/a>, the regulatory body has authorized the transfer of $4.6 million from the Fair Fund to an escrow account, which will be distributed according to the approved plan.<\/p>\n Interestingly, while BitClave committed to paying $29 million to the SEC\u2019s fund as part of the settlement, the company had apparently paid only $12 million. The money set to be released by the regulator means there will still be another $7.4 million remaining, and there is no current information about what will happen to it.<\/p>\n The post SEC Approves $4.6M Payment to Investors Affected by BitClave\u2019s Crypto ICO<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The U.S. Securities and Exchange Commission (SEC) has confirmed the distribution of over $4.6 million to investors impacted by the unregistered initial coin offering (ICO) of blockchain startup BitClave. The funds will be paid out from the BitClave Fair Fund following a notice and claims process. BitClave\u2019s $29 Million ICO Settlement \u201cThe checks are in […]<\/p>\n","protected":false},"author":0,"featured_media":23040,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-23039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/23039"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23039"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/23039\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/23040"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Notice and Claims Process<\/h2>\n