Start-up Blockchain agrees $ 23 million settlement on allegedly fraudulent chips



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The US's largest financial regulator has reached an agreement with Bitqyck Inc., a blockchain-based start-up based in Dallas, after allegations that it has fraudulently sold shares in the company to more than 13,000 buyers of its Bitqy cryptographic token.

In a statement released yesterday, the US Securities Exchange Commission (SEC) also alleged that the company and its founders, Bruce Bise and Sam Mendez, had fraudulently promised that investors would be interested in an investment facility. Cryptocurrency extraction via the sale of a secondary token, BitqyM, and its associated software. intelligent contract.

This facility was supposed to run on electricity below the market rate. In the end, no agreement of this type has been concluded, no such facility has been wrong.

"Bitqyck, aided and abetted by its founders, also illegally exploited TradeBQ, an unsecured national security stock exchange trading in a single title, Bitqy," the SEC said.

Although the founders of Bitqyck neither confirmed nor denied these accusations, the two men agreed to return all the money raised (more than 13 million dollars). with interest.

Bise and Mendez will also have to pay a civil fine of $ 8,375,617, as well as $ 890,254 and $ 850,022 respectively.

This perpetuates a true trend in judgments against (allegedly) fraudulent cryptocurrency startups across the United States and beyond.

Earlier this month, the SEC filed a lawsuit against a "self-proclaimed financial guru," who had collected $ 14.8 million from an allegedly fraudulent ICO, while the SEC had concluded the week last a settlement with a Russian company that had announced offers of initial parts without revealing its identity. paid for shill the coins.

Oops.

Posted on August 30, 2019 – 15:09 UTC

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