The SEC has announced a multimillion-dollar settlement to investors affected by the collapse of BitClave, an online advertising blockchain startup. The settlement amounts to more than $4.6 million.
Payments include both principal and interest to eligible investors.
BitClave Raised Over $25 Million in 2017
In 2020, the SEC sued 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 target amount was raised in less than a minute.
The BitClave Fair Fund was created by the SEC to compensate affected investors. According to today's announcement, the fund has distributed $4.6 million to individuals who participated in the BitClave ICO in 2017.
“The checks are on the way. We have distributed over $4.6 million to investors harmed by BitClave, PTE Ltd’s unregistered ICO.”, the SEC wrote on X (formerly Twitter)
According to SEC filings, BitClave agreed to contribute nearly $29 million to the fund. However, only $12 million has been contributed as of February 2023.
Eligible investors had until August 2023 to file their claims. The SEC completed its review process and notified claimants of their eligibility in March. This was an important step in providing redress for those affected by the ICO collapse.
Big changes expected under Trump presidency
Despite approving a Bitcoin ETF, the SEC is known for its tight control over the US cryptocurrency market. However, the agency is expected to make significant changes after President-elect Donald Trump takes office in January 2025.
A recent report suggests that SEC Chairman Gary Gensler may announce his resignation after Thanksgiving. Gensler has been criticized by the crypto community for his enforcement-focused stance on digital assets.
As previously reported by TinTucBitcoin, Trump is considering three pro-crypto candidates to replace him. Scott Bessent, a prominent crypto advocate, is also emerging as a leading candidate for Treasury Secretary.
Furthermore, Trump is reportedly planning to create a permanent crypto advisor position within the White House that would act as a liaison between Congress, regulators, and the administration on crypto policy.
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