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BitClave is unlikely to pay a $ 29 million deal

May 29, 2020

A company that was once advertised as a “decentralized alternative” to Google has recently coordinated with the SEC.

BitClave suffered an almost instant price drop

The project token price plummeted almost immediately when the listing changed and never recovered. Apparently, The dream of a “decentralized” Google has never been realized. The company’s website does not contain a link to a GitHub repository.

CAT token price, volume and market cap. Source. Coin360.

BitClave is unlikely to pay a $ 29 million dealBitClave is unlikely to pay a $ 29 million deal

Price, volume and market capitalization of CAT tokens. Source. Coin360.

The company was headquartered in San José, California, which may have increased its vulnerability to law enforcement. Given the collapse in market capitalization and the general devaluation of crypto assets since their peak, the company is unlikely to meet its commitments. Manny Alicandro, former NASDAQ vice president and deputy general counsel, told Cointelegraph:

“”While BitClave has agreed to pay approximately $ 29 million ($ 25.5 million in reimbursement, $ 3.5 million in interest and $ 400,000 in fines), this does not necessarily mean that they currently have all the funds, in order to do this.. In such agreements, it is customary to set the maximum amount to the extent that it is reimbursable. The SEC and the law offer maximum protection to the victim. “

32 seconds ICO

BitClave (CAT) raised $ 25.5 million in 32 seconds in 2017. Now it has to repay the funds to 9,500 investors, plus interest and penalties. BitClave’s enthusiastic founder and CEO, Alex Bessonov, was quoted in a press release after the ICO:

“Token sales are just the beginning of the journey. For the next step, we will come to the market with a massive first solution and clearly demonstrate the usefulness of the system. You can expect announcements such as open source SDK releases, trade associations and community grants to drive and expand the network. Stay tuned!”

Before and after

When the news hit the internet, the “Team” section disappeared from the website.

BitClave team section after the SEC announcement. Source: BitClave site.

BitClave Team Section after SEC announcement. Source: BitClave site.

Thanks to the WayBack machine, however, we were able to get a “before” picture.

BitClave Team Section from April 26, 2020. Source: WayBackMachine.

BitClave Team Section April 26, 2020. Source: WayBackMachine.

Given the apparent lack of development progress at BitClave It is unlikely that even the “Safe Harbor” framework proposed by SEC Commissioner Hester Peirce would not have helped this failed company.