In the end, Bitqyck and its founders reached a settlement with the SEC— without admitting to or denying the allegations. Bitqyck consented to a court order agreeing to pay disgorgement, prejudgment interest, as well as a civil penalty of over $8.3 million.
Full Answer
What happened to bitqyck?
The Securities and Exchange Commission today announced settled charges with Bitqyck Inc. and its founders, who allegedly defrauded investors in securities offerings of two digital assets, Bitqy and BitqyM, and operated an unregistered exchange to permit trading in one of them, a digital token called Bitqy.
What is bitqyck and tradebq?
Bitqyck, aided and abetted by its founders, also is alleged to have illegally operated TradeBQ, an unregistered national security exchange offering trading in a single security, Bitqy.
What is the SEC complaint against bitqy?
The SEC's complaint alleges that Bise and Mendez misrepresented QyckDeals, a daily deals platform using Bitqy, as a global online marketplace, and falsely claimed that each Bitqy token provided fractional shares of Bitqyck stock through a "smart contract."
What was Bitqyck's settlement with the SEC?
In the end, Bitqyck and its founders reached a settlement with the SEC— without admitting to or denying the allegations. Bitqyck consented to a court order agreeing to pay disgorgement, prejudgment interest, as well as a civil penalty of over $8.3 million.
What happened to Bitqyck?
The settlement stems from charges by the SEC which include fraud, false promises to investors, personal expenses of over half a million dollars paid directly by investor funds, and unregistered securities offerings.
How many countries have Bitqyck tokens been sold to?
territories, and 20 countries, through what the SEC calls “multiple, fraudulent unregistered digital asset securities offerings”. Ultimately, Bitqyck created and sold its tokens to more than 13,000 investors.
Who are the founders of Bitqyck?
The SEC alleges that Bitqyck Inc. and its founders— Bruce Bise and Sam Mendez— defrauded investors, operated an unregistered securities exchange, and raised over $13 million in an unregistered securities offering.
Who controlled Bitqyck?
According to the SEC’s complaint, “Bise and Mendez controlled Bitqyck’s bank accounts and funds, paid themselves distributions from the Bitqyck bank accounts funded exclusively with investor funds, and used those accounts to pay for their own personal expenses.
Does Bitqyck have a smart contract?
Yet, according to the SEC, no ‘smart-contract’ ever existed.
What is the complaint against Bitqyck?
District Court for the Northern District of Texas, charges Bitqyck, Bise and Mendez with violations of Sections 5 (a), 5 (c), and 17 (a) of the Securities Act and 10 (b) of the Exchange Act and Rule 10b-5 thereunder, and charges Bitqyck with violating Section 5 of the Exchange Act and Bise and Mendez with aiding and abetting that violation . The complaint seeks permanent injunctions, return of allegedly ill-gotten gains with interest, and civil money penalties. Without admitting or denying the allegations, Bitqyck, Bise and Mendez consented to final judgments agreeing to all the injunctive relief. Bitqyck also consented to an order requiring that it pay disgorgement, prejudgment interest and a civil penalty of $8,375,617. Bise and Mendez consented to the entry of an order that they each pay disgorgement, prejudgment interest and a civil penalty of $890,254 and $850,022, respectively.
Who owns Bitqyck?
According to the SEC's complaint, Bitqyck and founders Bruce Bise and Sam Mendezu001f created and sold Bitqy and BitqyM in unregistered securities offerings to more than 13,000 investors, raising more than $13 million.
Who conducted the SEC investigation?
The SEC's investigation was conducted by David Hirsch, Melvin Warren, and Carol Hahn with litigation support from Keefe Bernstein, and supervised by Scott F. Mascianica and Eric R. Werner of the SEC's Fort Worth Regional Office.
Does Bitqyck own mining?
In reality, Bitqyck did not have access to discounted electricity and didn't own any mining facility. Bitqyck, aided and abetted by its founders, also is alleged to have illegally operated TradeBQ, an unregistered national security exchange offering trading in a single security, Bitqy. The SEC's complaint, filed in U.S. District Court for ...
How much did Bitqyck pay?
Bitqyck paid an $8.3 million penalty to resolve claims that it defrauded investors in a civil settlement with the Securities and Exchange Commission (SEC) in August of 2019.
Who owns 100% of Bitqyck?
At the time of the pleas, Bise and Mendez own 100% of Bitqyck’s common stock.
What did the founders of a crypto startup pleaded guilty to?
The founders of a crypto startup pleaded guilty to tax evasion in connection with a 2016 initial coin offering (ICO).
Who owns BTC and ETH?
Eli is a news reporter for CoinDesk. He owns BTC, ETH and SOL.
When did Bise plead guilty?
Bise pleaded guilty on Sept. 9 and Mendez on Oct. 13, according to the department.
Where is Bitqyck located?
The Bitqyck is based out of the USA in the state of Texas and is owned by co-founder Sam Mendez and the other co-founder for the company was not listed.
What Products Does Bitqyck Offer?
In this section of the review, we are going to look for the products that Bitqyck offers.
