Crypto

BitQyck Founders Agree to Return $8.4m to Defrauded Investors

Numerous ICO projects have been flagged as illegal securities. A lot of those companies are now under investigation by the SEC. The company behind BitQyck, which allegedly defrauded investors, had its founders agree to pay $8.4m in damages. This is a key development for current and future investigations. 

The BitQyck Scheme

While many people assumed the BitQyck

token was perfectly legitimate, it did not take long to notice something was amiss. Bruce Bise and Sam Mendez are the individuals founding this project and associated company. As part of their token sale, they sold two different assets to thousands of investors. Both BitqyM and Bitqy combined for $13m in funding.

Of that money. $4,5m was paid to users who referred others to this token sale. It was a Ponzi Scheme waiting to collapse, however. The company claimed the Bitqy token was equal to a fractional share stock in the trading platform. The BitqyM tokens were issued to fund a cryptocurrency mining setup. Most of these claims were nothing but blatant lies. 

The SEC Investigates

Once the SEC got wind of the BitQyck ploy, they tried to shut it down immediately. Additionally, they charged both founders with defrauding investors and running an unlicensed trading platform. The mining operation associated with BitqyM was never created, which is where the fraud claims originate from. 

Related Post

The Bitqy token itself was only available for trading on TradeBQ, which was also operated by the same two individuals. While Bitqy had a use case in the form of an “online daily deals platform”, that platform served an entirely different purpose. It is evident that both individuals had major plans to deceive investors from day one, and will now pay the price for doing so. 

The Final Verdict

Despite overwhelming evidence collected by the SEC, neither Bise nor Mendez pleaded guilty to any of the charges they faced. Instead, they agreed to the final judgments without further complaints. Both men will pay disgorgement, civil penalty, and prejudgment interest. 

BitQyck, as a company, will pay a penalty of just under $8.4m. This is the money owed to investors, for the most part. It is a good thing to see the SEC crack down aggressively on ICO projects which fraudulently offered securities to investors. Especially those companies which claim to provide a business model which doesn’t exist in the real world. 


Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

Why it may be the best time to buy AAVE and Raboo (RABT), as Polygon and KSM both go up

The battle for the top altcoins is heating up in March 2024, with Polygon’s native…

3 mins ago

BTC ATH Close After Major Bullish Move, Top Analyst Still Thinks ALGT is a Better Choice

In the constantly fluctuating cryptocurrency market, Bitcoin (BTC) has stolen the spotlight with a dramatic…

5 hours ago

Fidelity Pursues Ethereum ETF Despite Potential SEC Hurdles

Fidelity Investments has taken a bold step in the cryptocurrency market by submitting a Form…

7 hours ago

Dogecoin Surges To New Heights Amidst Memecoin Frenzy

In an unexpected turn of events, Dogecoin, the beloved dog-themed memecoin, has skyrocketed to its…

7 hours ago

AGIX Token Unlock Boosts JasmyCoin Surge: BDAG Sold 4000+ Miners

BlockDAG Flies High with 4100 Home Miners Sold! AGIX Token Unlock Causes Frenzy! Jasmycoin Witnessing…

19 hours ago

From Rags to Riches: The Story of $100 Growing Into $200K with Bitgert Coin

There have been a series of success stories about cryptocurrency making new millionaires. We’ve heard…

19 hours ago