The U.S. Securities and Exchange Commission (SEC) has disbursed $4.6 million in reparations to investors of the BitClave initial coin offering (ICO), as announced on November 20. This payment stems from a 2020 settlement where BitClave was charged for failing to register its 2017 ICO as a securities offering. Investors who participated in the $25.5 million ICO will receive compensation following a notice and claims process. BitClave agreed to repay the entire amount raised and pay around $4 million in penalties, without admitting wrongdoing. The funds were placed in an escrow account termed the Fair Fund, which facilitated the distribution of payments. The SEC had determined that BitClave’s Consumer Activity Token (CAT) qualified as a securities offering because investors had grounds to expect an appreciation in value, referencing the project's white paper as evidence. Approximately 9,500 investors are entitled to this reimbursement, signaling an enforcement of regulatory compliance in the ICO space.

Source 🔗