Cryptocurrencies

BitClave and its 25 million ICO, new victim of the SEC who orders the reimbursement of investors – Cryptocurrencies

Three years ago, BitClave raised money from many investors in the form of an ICO. It had enabled him to mobilize from 9,500 people, including Americans, the total amount of $ 25.5 million for the realization of his project. She has since been forced to return the entire amount following a SEC orderSecurities and Exchange Commission – dating from May 28. Return on the reasons which led to the taking of such a measure by the American control organ.

Failure to register ICO tokens as a security

BitClave’s fundraising was done through the sale of CAT tokens – Consumer Activity Tokens – to different investors. It was to allow the development and marketing ofa blockchain-based search platform for targeted advertising. While hoping for an increase in the value of the CAT, Bitclave has therefore taken the necessary measures to bring it into service on various exchanges of digital assets.

BitClave

Unfortunately, like other ICOs, it has failed, like most, to save your tokens as titles. The SEC investigation therefore concluded that BitClave was guilty of selling unregistered securities.

To this end, Kristina Littman – head of the Cyber ​​Unit at the SEC – recalled that: “Issuers of securities, traditional or digital, must comply with the registration requirements of federal laws in this area. The corrective measures ordered by the Commission will bring about significant relief to investors in this unregistered offer

The CAT was therefore removed from the numerous trading platforms, and BitClave ended its activities related to the development of the platform. It will also face financial sanctions imposed on it by the SEC.

Damages to be paid in addition to full reimbursement

If BitClave did not officially admit its fault or seek to deny the conclusions of the investigation, it nevertheless accepted the fact of paying the compensation. She will have to reimburse the 25.5 million mobilized from investors during its ICO. In addition, a fine of $ 400,000 and damages totaling $ 3,444,197. It should be noted that the total amount will be redistributed to injured investors through a fair fund under the supervision of the SEC. BitClave has also announced that all of the CATs remaining in its possession will come under the control of the authorities who will proceed on deactivation and this permanently.

The SEC is not its first target for sanctions against illegal ICOs. Last year, she already condemned Block.one to pay a fine of $ 24 million for the EOS project. Hopefully after 3 years BitClave still has the funds to settle the bill.

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