In a legal battle that unfolded in 2020, the U.S. Securities and Exchange Commission (SEC) took action against BitClave, accusing the company of violating federal securities laws with its sale of Consumer Activity Tokens (CAT). The lawsuit was filed during the tenure of former SEC Chair Jay Clayton.
BitClave ultimately settled the charges brought by the SEC, although it did not admit any wrongdoing. As part of the settlement agreement, BitClave agreed to forfeit all the funds it had raised in 2017, along with an additional $4 million in interest and penalties.
Furthermore, BitClave agreed to destroy any remaining uncirculated CAT tokens and requested that exchanges remove CAT from their listings.
