US SEC Reaches $10 Million Settlement with Digital Assets Issuers

The United States Securities and Exchange Commission, a primary governmental regulator, has settled charges with digital assets company Bitqyck Inc. and its founders.

The SEC announced the development in a press release on Aug. 29.

According to the announcement, Bruce Bise and Sam Mendez­ are the founders of Bitqyck - a company that provided security offerings for digital assets Bitqy and BitqyM in Dallas, Texas.

The SEC alleged in its complaint that both of these claims were false.

The SEC alleged that the founders fraudulently misrepresented a platform called QyckDeals, which was a deals platform for Bitqy tokens.

Lastly, the SEC charged the company with illegally operating an unregistered, national security exchange for Bitqy entitled TradeBQ.Losses and settlement fees.

The SEC reports that Bitqyck raised over $13 million in fundraisers for its unregistered securities.

As per the settlement agreement, Bitqyck will pay $8,375,617, and Bise and Mendez will pay respective fines of $890,254 and $850,022.

SEC Chair won't make exceptions for digital assets.

As previously reported by Cointelegraph, SEC chairman Jay Clayton recently told Bloomberg that he doesn't plan to change securities laws to accommodate digital assets.