Welcome to the BitClave Fair Fund Website
This website has been established to provide general information related to the BitClave Fair Fund, the Fair Fund established in the United States Securities and Exchange Commission Proceedings, Admin. Proc. File No. 3-19816.
On February 9, 2023, the Commission issued an order approving the Plan and simultaneously posted the approved plan of distribution (the “Plan”).
On December 1, 2022, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The Proposed Plan provides that the distribution of the Fair Fund shall be made to those injured investors Eligible Claimants whom purchased or otherwise acquired eligible securities from July 25, 2017 and through May 27, 2020, inclusive, and suffered a recognized loss as calculated by the methodology used in the plan of allocation in the Plan.
On May 28, 2020, the Commission instituted and simultaneously settled cease-and-desist proceedings (the “Order”) against BitClave PTE Ltd. (“BitClave” or “Respondent”), an early-stage blockchain services company that operates through an entity in Singapore and maintains its principal place of operations in San Jose, California. In the Order, the Commission found that from July 2017 through November 2017, BitClave raised a total of approximately $25.5 million worth of digital assets from approximately 9,500 investors, including individuals in the United States, based on unregistered offer and sale to the public of digital asset securities called “Consumer Activity Tokens” (“CAT”). The Commission found that BitClave violated Sections 5(a) and 5(c) of the Securities Act for failing to file a registration statement as to the offering of CAT, and sold CAT to thousands of purchasers, including persons throughout the United States and foreign persons, and that such sales occurred through the use of interstate facilities-in this case, over the internet. Furthermore, BitClave did not purport to conduct the offering pursuant to any registration exemptions (nor did it qualify for any exemption). The Commission ordered the Respondent to pay a total of $29,344,197.00 in disgorgement, prejudgment interest, and civil money penalty to the Commission, pursuant to the payment plan detailed therein. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty, along with the disgorgement and prejudgment interest, can be distributed to harmed investors.
The Fair Fund includes $12,000,000 paid to date by Respondent and and any additional funds paid pursuant to the Order will be added to the Fair Fund. The Fair Fund has been deposited at the United States Department of the Treasury’s Bureau of the Fiscal Service (“BFS”) for investment.
The Notice of Proposed Plan of Distribution and Opportunity to Comment (the “Notice”) will be published on the Commission’s website at http://www.sec.gov/litigation/fairfundlist.htm. Any Person wishing to comment on the Plan must do so in writing by submitting their comments to the Commission within thirty (30) days of the publication of the Notice: (a) to the Office of the Secretary, United States Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090; (b) by using the Commission’s Internet comment form (www.sec.gov/litigation/admin.shtml); or (c) by sending an email to firstname.lastname@example.org. Comments submitted by email or via the Commission’s website should include “Administrative Proceeding File Number 3-19541” in the subject line. Comments received will be available to the public. Persons should only submit comments that they wish to make publicly available.
See the Commission’s Order: Release No. 33-10788 for additional information.