Another Blow From SEC to Altcoin
BitClave, which held its ICO in 2017, was ordered by the Securities and Exchange Commission to repay the income from the token sale to investors. The project will pay back more than $ 25 million to 95,000 investors.
Investor Refund Order
BitClave planned to create a blockchain-based search ecosystem and advertising platform with cryptocurrency awards. Like many other ICOs, BitClave started listing its tokens on cryptocurrency exchanges, thinking that their tokens would gain value over time. These two decisions partly led the SEC to identify BitClave as an informal security.
BitClave now has to repay $ 25 million in revenue and additional $ 3.8 million in fines. It will also give up its 1.32 billion CAT tokens, which is now worth $ 200,000.
Is the BitClave Project Dead?
According to the SEC , BitClave is “shutting down” and the company no longer plans to develop or support the platform. However, BitClave explains that the agreement has been reached and that the agreement “is pleased to resolve this regulatory issue with the SEC, emphasizing that the SEC has neither accepted nor rejected its findings”.
In practice, the project seems to be over. BitClave had to ask exchanges to distribute their tokens. Currently, YoBit is the only stock market that still lists the token. In addition, BitClave’s social media accounts have not been active since 2019, indicating that the project has been dead for some time.
Other SEC Cases
Similar situations have occurred in the past as the securities regulation has no clear way for blockchain businesses.
Most importantly, EOS and Sia agreed with the SEC in 2019 and Enigma reached a compromise this year. All three companies were allowed to continue their activities after paying fines. Meanwhile, Telegram has faced much tougher charges on security breaches. With SEC’s moves, the project had to end itself. Despite these restrictions, SEC Commissioner Hester Peirce has made constant efforts to introduce more permissive rules – but these changes have not yet come into effect.