In the latest report, the United States Securities and Exchange Commission (SEC) settled charges against a firm and its founders who allegedly defrauded investors.
SEC has been battling against bad players in the crypto market. Announced earlier today, SEC settled charges against Bitqyck Inc., and its founders, Bruce Bise, and same Mendez.
SEC Settles Charges With Texas-Based Firm Accused of Fraud
Per the report, Bitqyck and its founders were involved in defrauding the investors via the sale of two digital assets; Bitqy and BitqyM. Moreover, they caught with an unregistered exchange to enable crypto trading in one of above two tokens. Specifically, they sold these two digital assets in unregistered securities offerings to over 13000 investors. They reportedly raised over $13 million wherein investors received about $4.5 million for referring new investors to Bitqyck trading platform. But the report adds, these investors collectively lost over two-thirds of their investment in the Bitqyck.
Besides these, the firm involved in operating an online marketplace QyckDeals using Bitqy and alleges that each Bitqyck token will carry shares of Bitqyck stock via a smart contract. Investors were told that Bitqyck is a crypto mining facility and they will receive BitqyM tokens but in reality, they didn’t own any mining facility. Moreover, the complaint alleges that they were also accusing investors via false token service via unregistered national security exchange offering, TradeBQ.
David Peavler who is the Director of the SEC’s Fort Worth Regional Office said elaborates;
“Because digital investment assets represent new and exciting technology, they can be very alluring, especially if investors believe they are getting in on the ground floor and will own part of the operations, David said. “We allege that the defendants took advantage of investors’ appetite for these investments and fraudulently raised millions of dollars by lying about their business.”
The US SEC’s complaint now seeks permanent injunctions, civil money penalties and return of income which the defendants earned after defrauding investors.
However, Bitqyck agreed to pay the civil penalty of $8,375,617 on top of disgorgement. Also, Bise ad Mendez consented to pay a civil penalty of $890,254 and $850,022, respectively besides disgorgement and prejudgment.