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The US Securities and Exchange Commission (SEC), one of the major government regulators, has settled charges against the Bitqyck Inc. digital asset company and its founders.
Smart Contracts and Crypto Mining?
The SEC announced this development in a press release issued Aug. 29. According to this announcement, Bruce Bise and Sam Mendez are the founders of Bitqyck, a company that provides security offerings for Bitqy and BitqyM digital assets in Dallas, Texas. The company claimed that Bitqy's chips gave investors a fraction of the company's stock shares via a smart contract. In addition, Bitqyck said that BitqyM tokens would give holders interest in a cryptocurrency mining facility running on electricity at the submarket rate, according to the press release.
The SEC alleged in its complaint that these two statements were false. The SEC alleged that the founders fraudulently introduced a platform called QyckDeals, which was a trading platform for Bitqy tokens. Finally, the SEC has accused the company of illegally exploiting an unregistered national security exchange against Bitqy titled TradeBQ.
Losses and settlement costs
The SEC reports that Bitqyck has raised more than $ 13 million in fundraising for its unregistered securities. In addition, the statement said investors received $ 4.5 million through referrals, but still lost more than two-thirds of their investments.
According to the announcement, Bitqyck and its founders agreed with the regulator. In accordance with the settlement agreement, Bitqyck will pay $ 8,375,617 and Bise and Mendez, respectively fines of $ 890,254 and $ 850,022.
SEC president will not make exception for digital assets
As previously reported by Cointelegraph, SEC chairman Jay Clayton recently told Bloomberg that he was not considering changing securities laws to take over digital assets. He stated:
"I think a lot of people were excited about the fact that we were going to change the rules to integrate technology. They invested their time and effort in thinking that this would happen […] From the beginning, I was pretty clear that it does not happen. ''
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