SEC settles with Bitqyck and its founders accused of $13m fraud

[mlawson71]

The US Securities and Exchange Commission (SEC) has settled with founders of crypto exchange Bitqyck over an alleged $13 million fraud. Bitqyck’s founders Bruce Bise and Sam Mendez will pay a civil penalty of $8.5 million on top of disgorgement and prejudgment interest.

The SEC charged Dallas company Bitqyck and its founders with defrauding over 13 million investors in operating unregistered digital asset exchange and unauthorized offering. More specifically, Bitqyck offered their own token Bitqy, and falsely claimed that each Bitqy provided fractional shares of Bitqyck stock through a “smart contract.” They also offered BitqyM tokens, which allegedly provided an interest in a Bitqyck cryptocurrency mining facility powered by below-market rate electricity

Thus, the exchange and its founders fraudulently raised millions of dollars.

Source

[Contagem]

Such cases help to clear the cryptocurrency market from scam projects and from those projects that perform some kind of fraud in order to mislead investors. I think in the future the cryptocurrency industry will look much better and safer than it is now.

[ZionRTZ]

Good job for the SEC for stepping. This is the area in crypto where regulation is really needed. Businessmen cannot just use the popularity of crypto by creating a (security) token and selling it to investors, but not register it properly with the authorities.