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.

Published by
JP Buntinx

Recent Posts

Crypto Veteran Investor Explains Bollinger Bands and How To Spot Gems Like Cardano and Bitcoin Spark

In the world of cryptocurrency investments, having the right tools and strategies at your disposal…

1 hour ago

October Historically Is A Good Month For Cryptocurrency Market, Here’s Why You Should Buy In Now

October has historically been a good month for Bitcoin and the cryptocurrency market. In the…

4 hours ago

Why THORChain, Tradecurve Markets, The Graph Are Leading the Future of DeFi

The BNB Smart Chain recently launched on top of THORChain (RUNE). Moreover, The Graph (GRT)…

6 hours ago

Chainlink (LINK) vs. Solana (SOL): Everlodge (ELDG) Emerges as the Ultimate High-Reward Alternative

Chainlink (LINK) and Solana (SOL) are two of the most popular blockchain projects, but their…

6 hours ago

A Shift in Power? Pomerdoge (POMD), Toncoin (TON), and Maker (MKR) Claim Top Gainer Status

In a surprising shift of power in the cryptocurrency market, Pomerdoge (POMD), Toncoin (TON), and…

6 hours ago

A Look At Current Social Metrics As $PEPE Leads The Way In The Top 10 Trending Searches On LunarCrush

Social media is a powerful tool for investors of all kinds, but it is especially…

20 hours ago