The US SEC said late Wednesday that it would distribute $4.6m in reparations to investors involved in BitClave’s Ethereum-based search engine ICO.
“After a notice & claims process, investors will now be receiving their share of the BitClave Fair Fund,” the agency said on X.
During the ICO boom in 2017, BitClave raised $25.5m from 9,500 investors. The offering sold out in an impressive 32 seconds.
SEC Ordered BitClave to Compensate Investors With $29M Fund, Delist Tokens
In 2020, BitClave settled with the SEC and agreed to pay reparations after facing charges for failing to register its ICO as a securities offering.
As part of the settlement, BitClave agreed to return $25.5M. It also agreed to pay about $3.4m in prejudgment interest and a $400k fine. Additionally, the company committed to destroying 1 billion uncirculated CAT tokens and pursuing delisting from exchanges.
Further, the SEC mandated the creation of a Fair Fund by BitClave to facilitate the return of these funds to investors. The deadline for investors to file claims was set for Aug. 2023, with notifications on claim statuses sent out in March this year.
BitClave pledged to contribute approximately $29m to the SEC’s fund for investor compensation. However, by Feb. 2023, BitClave had only contributed $12m toward investor compensation, as outlined in the latest SEC document concerning the BitClave Fair Fund.
Trump’s Pro-Crypto Vision Challenges Biden’s Regulation-Heavy Crypto Policies
The SEC’s enforcement activities have not been limited to BitClave. High-profile crypto exchanges like Binance and Coinbase have also faced scrutiny for alleged unregistered securities operations and fraudulent practices, reflecting a broader crackdown on the crypto sector.
Amidst these developments, the cryptocurrency community sees a divide. Some industry advocates push for regulations specifically tailored to digital assets’ unique nature, while others back the SEC’s existing regulatory measures.
In a notable shift, President-elect Donald Trump has vowed to make the US a global leader in cryptocurrency, taking a stance that sharply contrasts with the Biden administration’s strict regulatory approach.
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