Emily Walker
Investors of BitClave can finally expect checks in the mail following the announcement from the Securities and Exchange Commission (SEC) via Twitter/X. This comes after the controversial 2017 ICO offering, as investors can now claim their rightful compensation. The total amount being disbursed is $4.6 million designated for those affected by BitClave’s unregistered digital asset securities.
This settlement, which was ratified in 2020, was confirmed by the SEC on November 20th, indicating that funds are now accessible. Qualified investors can commence collecting their shares from the BitClave Fair Fund after completing the Notice & Claims procedure.
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. After a notice & claims process, investors will now be receiving their share of the BitClave Fair Fund. pic.twitter.com/zUdHRkAoS2
— U.S. Securities and Exchange Commission (@SECGov) November 20, 2024
SEC Allocates $4.6 Million for Investor Reimbursement
The recently published document Release No. 101653 confirms the payout to BitClave investors, totaling $4,614,679.81. The SEC has earmarked this settlement fund specifically for affected investors.
These funds will be drawn from the Fair Fund and deposited into an escrow account at Huntington National Bank, N.A., for distribution. The SEC has stated that checks are currently being sent out, with funds available following the Notice & Claims process.
Details of The Unregistered ICO
The 2017 ICO from BitClave gained significant buzz, raising $25.5 million within just 32 seconds. The project centered around the Consumer Activity Token (CAT), categorized later as an unregistered security. The SEC revealed that many investors were drawn to buy tokens with hopes for price increases.
Following the settlement guidelines, BitClave is expected to refund the funds raised and pay $4 million in associated fines and interest. During this process, John Deaton criticized the SEC for relying on 1933 legislation.
To ensure that affected investors receive their compensation, the SEC created the Fair Fund. A claims submission process was initiated, concluding in August 2023, with notices sent out to qualified investors in March 2024.
BitClave Commits to Refund and Token Destruction
As part of the settlement, BitClave promised to return $29 million, which includes $4 million in fines and the $25.5 million acquired during the ICO. Additionally, the company has urged cryptocurrency exchanges to remove all unissued tokens from circulation and has committed to burning them.
In February 2024, the SEC noted that the crypto sector transferred only $12 million to the Fair Fund, leaving $7.4 million unresolved as it did not facilitate its transfer. There has been no further information from the agency or fund administrator regarding how the outstanding funds will be managed.
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