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.
Choosing AML Software: Why Anti-Money Laundering Protocols Should Always Be A Priority
Did you know that an estimated 2-5% of the global GDP (approximately $800 Billion - $2 Trillion USD) is laundered each year? With money laundering posing such a huge threat due to its ties to financing terrorism, forced prostitution & human trafficking, smuggling,...
Power in Transparency: Why Comprehensive KYC Protocols Matter
Do you know who you’re doing business with? Organizations must have properly vetted security and identification processes in place to protect their business and clients, particularly to lay a solid foundation for future growth and success. Know Your Customer (KYC)...
Customer Due Diligence You Can Trust: iComplyKYC
Is your customer due diligence process set up for success? Ensuring the safety of digital commerce and virtual asset management have become two of the most important points of conversation when it comes to global securities, specifically when it comes to anti-fraud,...
