SEC Ruling Issued Against BitClave ICO
Unregistered $25.5-million ICO issuer ordered to return money to investors
What Happened?
May 28, 2020: The Securities and Exchange Commission (SEC) found BitClave PTE Ltd. of San Jose, California conducted an unregistered Initial Coin Offering (ICO) between June and November 2017.
Source: https://www.sec.gov/news/press-release/2020-124
Who Is Impacted?
The 9,500+ investors who invested USD $25.5 million into BitClave’s Consumer Activity Token (CAT).
Why This Matters?
Because it was never registered as a security, the public sale of the CAT token violated the registration provisions of federal securities laws in the United States.
In the US, securities issuers must follow registration requirements, or use a registration exemption such as Reg D or Reg CF. Token issuers that use US exemptions must follow specific restrictions and thresholds – for both the primary sale and the secondary market of any security they issue. BitClave has been ordered by the SEC to return all the funds they acquired through this token sale.
What’s Next?
Without admitting or denying the SEC’s findings, BitClave has agreed to pay a total disgorgement of USD $25,500,000, a prejudgment interest of USD $3,444,197, and a penalty of USD $400,000. The SEC’s order also establishes a Fair Fund to return monies paid by BitClave to the 9,500+ injured investors.
Finally, BitClave has also agreed to transfer all of the remaining CAT in its possession to the fund administrator for permanent disabling, publish a notice of the SEC’s order through their site, and request the removal of CAT from all virtual asset trading platforms currently listed for sale or trade.
learn more
Is your AML compliance too expensive, time-consuming, or ineffective?
iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.
Request a demo today.
Centralized Digital Identity and ID “Phone Home” Privacy Alarms
As digital ID systems expand globally, centralised platforms like One Login and Aadhaar raise major concerns about privacy, data security, and surveillance. This article explores the risks of identity systems that phone home and how iComply’s decentralised identity verification solution offers a more secure and compliant path forward.
How to Do a KYC Refresh the Right Way
KYC refresh is a critical part of ongoing due diligence. This guide explains how to build an efficient, risk-based KYC refresh strategy using identity verification tools to improve compliance, customer experience, and operational performance.
Accelerating Ultimate Beneficial Ownership Discovery with KYB Compliance Software
Beneficial ownership discovery doesn’t need to be slow or manual. This article explores how firms can use advanced KYB software to comply with UBO requirements from AUSTRAC, FCA, FinCEN, and the EU AMLA – while improving customer satisfaction and operational efficiency.
