SEC pays $4.6 million to BitClave investors after lawsuit

The SEC has announced the distribution of millions of dollars to investors affected by the collapse of BitClave, an online advertising blockchain startup. The a...

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The SEC has announced the distribution of millions of dollars to investors affected by the collapse of BitClave, an online advertising blockchain startup. The amount of compensation amounted to more than 4.6 million USD.

Payments include both principal and interest to qualified investors.

BitClave raised more than 25 million USD in capital in 2017

In 2020, the SEC sued BitClave, accusing the company of violating federal securities laws during its $25.5 million capital 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 established by the SEC to compensate affected investors. According to Notification today, the fund distributed $4.6 million to individuals participating in the 2017 BitClave ICO.

“The checks are being sent out. We Distributed Over $4.6 Million to Investors Harmed by BitClave, PTE Ltd’s Unregistered ICO.”, SEC write on X (formerly Twitter)

According to file SEC, BitClave has agreed to contribute nearly $29 million to the fund. However, only $12 million has been contributed as of February 2023.

Qualified investors had to file complaints by August 2023. The SEC completed its review and notified complaints of their eligibility in March. This is a important step in providing compensation to those affected by the ICO collapse.

Big changes are expected under President Trump

Despite its approval of the 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.

Recent reports suggest 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-cryptocurrency candidates to replace him. Scott Bessent, a prominent cryptocurrency advocate, is also emerging as a leading candidate for Secretary of the Treasury.

Furthermore, Trump is reportedly planning to establish a permanent cryptocurrency advisor position in the White House. This position will act as a liaison between Congress, regulators and authorities on cryptocurrency policy.