SEC Distributes Almost $5 Million to BitClave ICO Investors

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The SEC of the United States has recently issued a statement announcing the distribution of $4.6 million to investors of BitClave, a defunct cryptocurrency startup’s 2017 ICO. This distribution was made possible by the establishment of the BitClave Fair Fund as part of a settlement reached in 2020.

Following legal action taken by the SEC for alleged violations of securities laws during the ICO, BitClave ceased its operations in 2020. During the ICO boom in 2017, BitClave raised a staggering $25.5 million in just 32 seconds by selling its Consumer Activity Token (CAT) to thousands of investors. However, the SEC, under the leadership of former Chair Jay Clayton, filed charges in 2020, claiming that the offering was an unregistered securities sale.

BitClave agreed to a settlement without admitting guilt and agreed to surrender the $25.5 million raised, along with $4 million in interest and penalties. As part of the settlement, BitClave also committed to destroying any uncirculated CAT tokens and requested that exchanges remove the digital assets from their platforms.

The Fair Fund was established to ensure that affected investors would receive compensation. The SEC has now returned a portion of the $4.6 million to investors who submitted a valid claim form by the April 19, 2021 deadline.