Illegal ICO Project Reaches Agreement With SEC, Will Refund 25 Million USD To Investors

The United States SEC has halted the operations of one more beneficiary of the 2017 ICO bubble. The project dubbed BitClave conducted an unregistered ICO that began in June 2017.

The Securities and Exchange Commission published an official statement about BitClave, which is an ICO project based out of the United States.

Notably, BitClave raised over twenty-five million USD from around ninety-five hundred investors. In return, the investors received ERC-20 based tokens, dubbed Consumer Activity Tokens (CAT). SEC mentioned that CAT tokens had all of the features of a security.

Regardless of this fact, all the development and marketing actions of the product are frozen and its team is showing no interest in upkeep or development of the project.

The project’s team reached an agreement with the Securities and Exchange Commission to repay the entire amount of twenty-five million USD to investors through an exclusive fund.

Furthermore, the promoters are being charged a prejudgment interest of three and a half million USD apart from a fine of four hundred thousand USD. In addition to that, Consumer Activity Tokens must be delisted from all exchanges.