The SEC sues BitClave for conducting an unregistered ICO, raising approximately $25.5 million from over 9,500 investors by selling CAT tokens. BitClave intended to use the funds raised to develop a decentralized search engine that would allow users to control their data.
The SEC found that the ICO constituted an unregistered securities offering. CAT tokens were deemed securities because they were sold to raise funds for the company’s operations with the expectation that their value would increase as the company developed its platform. BitClave agreed to return the $25.5 million to investors and pay an additional $400,000 in penalties. The SEC also created a Fair Fund to distribute the collected funds to affected investors.
File No. 3-19816
Major Filings
Related Developments