• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • About us
  • Write for us
  • Terms and Conditions
  • Privacy Policy
  • Disclaimer
  • Contact
  • All Posts
  • Advertise

TronWeekly

Crypto World News

  • Home
  • Education
    • Best TRON Wallets
    • Beginner’s guide to TRON
  • Opinion
    • Tron Tokens
    • Market Analysis
  • Industry
    • Tron Exchange
    • Project Review
  • Press Release
  • Advertise
  • About us
    • The Team
    • Editorial Policy
    • Write for us
    • Privacy Policy
    • Disclaimer
    • Terms and Conditions
    • Contact
You are here: Home / News / SEC Orders BitClave to Pay Back its Customers as Regulatory Body Makes Decision on 2017 ICO
SEC Orders BitClave to Pay Back its Customers as Regulatory Body Makes Decision on 2017 ICO

SEC Orders BitClave to Pay Back its Customers as Regulatory Body Makes Decision on 2017 ICO

May 29, 2020 by Akash Anand

Regulatory bodies have also kept a close eye on companies involved in the cryptocurrency industry. The main reason for this was the lack of legal clarification and the growing number of fraudulent activities in the region.

Another cryptocurrency organization was recently put to the sword when BitClave, a California-based startup, was paying all its customers back to the US Securities and Exchange Commission [SEC]. Charges were filed against BitClave for conducting an unregistered ICO back in 2017.

BitClaive’s first shot to fame when it raised over $25 million from more than 9,500 investors before the Bitcoin bull ran three years ago. Once the SEC clamped down on the Ethereum-based search engine, things moved pretty quickly to the legal front. BitClave neither confirmed nor denied the illicit aspects of the ICO and agreed to comply with SEC’s orders.

According to the SEC, BitClave will pay back all its customers through a Fair Fund established just for this purpose. The startup had raised the vast capital by selling its native Consumer Activity Token or CAT. The investors were told that BitClave would use the money to develop, administer, and market a “blockchain-based search platform for targeted consumer advertising. A release from the SEC said:

“ BitClave emphasized its expectation that the tokens would increase in value, and took steps to make the tokens available for trading on third-party digital asset trading platforms after the ICO.  The order finds that BitClave failed to register their offers and sales of CAT, which constituted securities.  CAT has since been removed from many of the third-party trading platforms, and BitClave is currently winding down its operations and does not plan to continue developing or supporting the platform. “

Kristina Littman, the Chief of the SEC Enforcement Division’s Cyber Unit added that all issuers of securities must follow the rules charted down by the federal body. The SEC also reiterated its mission to protect the people and their assets at all costs.  The SEC pointed out that CAT tokens were indeed investment contracts because of what was mentioned in the token’s whitepaper.

The CAT whitepaper had told users that as more service providers join the platform, the value of CAT tokens would appreciate. As it stands, the SEC has ordered BitClave to transfer 1.32 billion uncirculated CAT tokens so that they can be taken off the markets. Almost all major cryptocurrency exchanges have removed the token from their platforms, save a few that is expected to follow suit soon.

Filed Under: News Tagged With: bitclave, Cryptocurrency, Ethereum (ETH), ico, news, SEC

Primary Sidebar

Recent Posts

  • Uniswap [UNI] Garners Maximum Gains While Bears Haunt The Crypto Market April 23, 2021
  • Is Ethereum a Better Asset Allocation for Performance Right Now? April 22, 2021
  • Turkish Crypto Exchange Users Succumb to Losses After CEO Absconds April 22, 2021
  • Tron [TRX] Bulls Stagnate Near $0.12 After Remarkable Comeback April 22, 2021
  • Bitcoin To Encounter “Major Correction” Warns Guggenheim’s Scott Minerd April 22, 2021


Footer

News

  • Altcoin News
  • Bitcoin News
  • Blockchain
  • Tron News
  • World

Digest

  • Meet the Founder
  • Price Winning Article
  • DeFi
  • Cyber Security
  • Crypto Scam

Industry

  • Project Review
  • Technology
  • Fintech
  • Tron Exchange
  • New in Town

Tron Universe

  • Event and Tron Parties
  • New in Town
  • Tron Tokens

Follow Us

Subscribe US

Copyright © 2021 · Tron Weekly. All Rights Reserved. NOTE: Tron Weekly is an independent crypto news site that adheres to the strict journalism policy anchored on transparency, trust, and objectivity, we have no affiliation with the TRON Foundation, its founder Justin Sun or any other cryptocurrency firm.