Bitqyck Settles Unregistered Token Sale Case with SEC

Bitqyck Settles Unregistered Token Sale Case with SEC

The US Securities and Exchange Commission (SEC) has settled with the cryptocurrency exchange Bitqyck and its founders the case of two unregistered token sales.

According to a press release, Bitqyck founders Bruce Bise and Sam Mendez raised $ 13 million in sales of Bitqy and BitqyM tokens to more than 13,000 investors. According to the SEC, the defendants told investors that Bitqy tokens would be fractional shares of Bitqyck, while BitqyM tokens would provide investors with a percentage of the proceeds of a mining enterprise.

The SEC also stated that the defendants “falsely presented the QyckDeals daily trading platform that Bitqy used as a global online marketplace.” In fact, the defendants did not own any enterprises for the extraction of cryptocurrencies. In addition to these allegations, the SEC claims that the defendants operated an unregistered TradeBQ exchange to allow investors to trade Bitqy tokens.

“Investors allegedly received a total of $ 4.5 million for attracting new customers to Bitqyck, but in total they lost more than two-thirds of their investments,” the press release said.

In a statement, SEC Regional Director David Peavler said “digital investment assets” can be attractive, especially for investors who believe that they gain partial ownership of the company through their tokens. He added:

“We claim that the defendants took advantage of investor interest in these investments and fraudulently raised millions of dollars by providing false information about their business.”

The SEC demanded an action injunction against the defendants, a fine, and the return of all funds received with interest. The defendants agreed with all the charges – Bitqyck will pay a civil fine of $ 8.5 million, as well as interest. In addition, Byse will pay $ 890,254, and Mendes will pay $ 850,022.

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According to the SEC, the Commission has settled business with nearly 40 cryptocurrency startups that have been selling tokens over the past few years. Just this month, the healthcare blockchain company SimplyVital Health settled the issue with the Commission regarding its $ 6.3 million ICO held in 2017.


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