SEC Distributes $4.6 Million to BitClave ICO 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 reimbursement amount is over $4.6 million.

The payments include principal amounts and interest for eligible investors.

BitClave ICO Raised over $25 million in 2017

In 2020, the SEC filed a lawsuit against BitClave, accusing the company of violating federal securities laws during its $25.5 million fundraising campaign in 2017.

The startup launched its Consumer Activity Token (CAT) through an initial coin offering (ICO) that attracted thousands of investors. The targeted funds were raised in under a minute.

The BitClave Fair Fund was established by the SEC to compensate affected investors. According to today’s statement, it has now distributed $4.6 million to participants in the 2017 BitClave ICO.

“The checks are in the mail. We are sending out more than $4.6M to investors 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 nearly $29 million to the fund. However, only $12 million had been contributed as of February 2023.

Eligible investors were required to file claims by August 2023. The SEC completed the review process and notified claimants of their eligibility status in March. This marks a significant step in providing restitution to those impacted by the ICO’s fallout.