The US Securities and Exchange Commission (SEC) has returned $4.6m to investors harmed by BitClave’s unregistered initial coin offering (ICO). The announcement was made on 20 November, following a settlement BitClave reached with the SEC in 2020. BitClave, an Ethereum-based search engine, conducted a $25.5m ICO in 2017, offering Consumer Activity Tokens (CAT).
The SEC later classified the offering as a securities sale, citing that investors were led to believe CAT would appreciate in value. BitClave did not admit wrongdoing but agreed to return the funds raised and pay an additional $4m in penalties. The funds were distributed from the Fair Fund, an escrow account created to compensate approximately 9,500 investors.
The case highlights the SEC’s aggressive regulatory approach under President Joe Biden’s administration, which has initiated over 100 actions against crypto firms.