Catenaa, Tuesday, November 26, 2024 – The US Securities and Exchange Commission (SEC) has confirmed the distribution of $4.6 million to investors affected by BitClave’s unregistered initial coin offering (ICO).
The payments are part of the $29 million settlement reached after the blockchain startup’s 2017 ICO, which raised $25.5 million.
BitClave sought to develop digital advertising with a decentralized search engine, selling its Consumer Activity Token (CAT) to nearly 9,500 investors.
However, in 2020, the SEC sued the company, alleging the ICO violated federal securities laws. BitClave settled without admitting wrongdoing, agreeing to repay investors and pay additional penalties.
The funds will be distributed through the BitClave Fair Fund, created to compensate affected investors.
The SEC initially approved a distribution plan in February 2023, requiring eligible investors to submit claims by August 2023. Notifications of accepted claims were sent in March 2024.
However, BitClave initially committed to contributing $29 million, only $12 million was deposited into the fund as of February 2023. The SEC’s current distribution leaves $7.4 million unaccounted for, with no updates on its status.
