The SEC has announced the distribution of millions of dollars to investors affected by the collapse of online blockchain advertising startup BitClave. The compensation amount is more than $4.6 million.
Payments include the principal amount plus interest for eligible investors.
In 2020, the SEC filed a lawsuit against BitClave, accusing it of violating federal securities laws during its $25.5 million fundraising campaign in 2017.
The startup has launched its Consumer Activity Token (CAT) through an initial coin offering (ICO), which has attracted thousands of investors. The target number was collected in less than a minute.
The SEC established the BitClave Fair Fund to compensate affected investors. According to the latest statement Currently, $4.6 million has been distributed to participants in the 2017 BitClave ICO.
“The check is in the mail. We are sending more than $4.6 million to investors who were harmed by BitClave, PTE Ltd.’s unregistered ICO of digital asset securities,” the SEC wrote on X (formerly Twitter).
According to SEC filings, BitClave agreed to pay approximately $29 million to the fund, but as of February 2023, only $12 million had been donated.
Eligible investors must file claims by August 2023. The SEC completed its review process and notified claimants of their eligibility status in March. This is an important step in providing compensation to those affected by the ICO collapse.
Even after approving the Bitcoin ETF, the SEC continues to maintain a tight grip on the US crypto market. But with President Donald Trump inaugurated in January 2025, the agency is poised to make significant changes.
Recent reports indicate that SEC Chairman Gary Gensler may announce his retirement after Thanksgiving. Gensler has faced criticism from the community. cryptocurrency For a position that focuses on the enforcement of digital assets
As BeInCrypto previously reported, Trump is considering three pro-crypto candidates to replace him. Scott Besant, a well-known crypto supporter, also emerged as a leading contender for finance minister.
Trump is also reportedly planning to establish a permanent crypto advisory role within the White House. This position will serve as a liaison between Congress. Regulatory agencies and the executive branch regarding digital currency policy.