SEC Agrees On A $10 Million Settlement With Digital Assets Issuers

The United States Securities and Exchange Commission (SEC), which is a primary governmental regulator, has recently settled charges with the digital assets company Bitqyck Inc. and its founders. The latest cryptocurrency news show that SEC agrees on a $10 million settlement with the digital assets company and its founders.

Previously, the SEC announced the development in an official press release which was published on August 29. As the announcement then noted, Bruce Bise and Sam Mendez are the founders of Bitqyck – a company providing security offerings for the digital assets Bitqy and BitqyM in Dallas, Texas.

What’s interesting is the fact that before, the company claimed that Bitqy tokens gave investors fractional shares of the company stock through a smart contract – and that the BitqyM tokens would give users interest in a crypto mining facility running on sub-market-rate electricity, the press release notes.

Now that the SEC agrees on a settlement, it alleged in its complaints that both of these claims were false. It alleged that the founders misrepresented a platform called QyckDeals, which was a deals platform for Bitqy tokens. Lastly, the regulatory body charged the company with illegally operating an unregistered national security exchange (TradeBQ).

The SEC agrees on a $10 million charge by Bitqyck and noted that the company raised over $13 million in fundraisers for its unregistered securities which were featured in the altcoin news. The release also notes that investors received around $4.5 million via referrals but managed to lose over two thirds of their investments as a whole.

Lastly, the announcement details that Bitqyck and its founders have settled with the regulator. As the agreement notes, Bitqyck will pay $8,375,617, while Bise and Mendez will be charged with respective fines of $890,254 and $850,022, respectively.

Before this, we saw the SEC chairman Jay Clayton with an interesting view towards the securities laws. As he told Bloomberg a while ago:

“I think a lot of people got excited that somehow we would change the rules to accommodate the technology and they invested their time and effort thinking that would happen […] I have been pretty clear from the start, that ain’t happening.’’

Meanwhile, the best cryptocurrency news sites show that the market is still unstable and that there hasn’t been an uptick since yesterday’s market-wide drops.