EddieJayonCrypto
24 Nov 24
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. Bi...
The U.S. Securities and Exchange Commission (SEC) has confirmed the distribution of over $4.6 million to investors affected by BitClave's unregistered initial coin offering (ICO). The funds will be paid out from the BitClave Fair Fund following a notice and claims process. BitClave settled SEC charges by agreeing to pay back the $4.6 million to investors from the $29 million ICO. The SEC has authorized the transfer of $4.6 million from the Fair Fund to an escrow account for distribution, with $7.4 million still remaining from BitClave's commitment. BitClave, a blockchain-based startup, aimed to revolutionize the digital advertising industry by creating a decentralized search engine. The project's ICO in 2017 raised over $25 million from nearly 9,500 investors in less than a minute. However, in 2020, the SEC sued BitClave for violating federal securities laws, leading to a settlement where BitClave agreed to pay back the raised amount, totaling about $29 million, to investors. The SEC's Division of Enforcement published a Notice of Proposed Plan of Distribution for the Fair Fund, with a detailed methodology for distributing the fund and any accrued interest to investors. Investors eligible for compensation were required to submit claims, and the SEC reviewed and accepted the payment file for distribution. Despite BitClave's commitment to paying $29 million, the company had apparently only paid $12 million. The transfer of $4.6 million from the Fair Fund means there will still be another $7.4 million remaining, with no current information about its fate.