NEW #SEC consent order with #BitClave related to $25.5mm ICO of . A few interesting points in this settlement (h/t to @collins_belton for the eagle eye) sec.gov/news/press-rel…
BitClave raised $25.5 million selling 9,500 investors (called it a fundraiser), incl. to US persons. Issuer was a US entity operating via Singapore PTE LTD. to be used to pay people to watch ads, ICO (July 25, 2017 (date of #TheDao rule 21 report!) -Nov 29, 2017)
CAT sold directly & distributed via bounty program. Sold 680mm CAT, held 1.32bil CAT. Issuer emphasized expectation that CAT would appreciate in value in WP, on social media channels, youtube. Issuer arranged for CAT to be listed on exchanges.
Later, business sued its cofounder & obtained a judgment after jury trial in the amount of ~$12.6mm. Bitclave announced it would not go forward with its business thereafter. Penatlies include disgorgement interest penalities, & Fair Fund (sec.gov/about/rulespra…) like #plexcorps
Issuer to liquidate assets to pay consented to penalities/disgorgement but can keep IP if they can fully pay from other assets; agree not to wind down volutnarily in Singapore until all assets liquidated to pay amounts due under order; notify exchanges to delist
Fair Fund intended to distribute funds to affected investors; also in this case charged with obtaining the 1.32billion to "enable the Fund Administrator to permanently disable such "
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