Texas-Based Cryptocurrency Firm Bitqyck Hit With $8 Million SEC Fine

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The Securities and Exchange Commission (SEC) announced today that it has settled charges against Dallas-based crypto firm Bitqyck Inc. and its founders.

The company had previously been charged with defrauding its investors through two alleged securities offerings—Bitqy and BitqyM. The firm was also charged with running an unlicensed exchange for trading and selling Bitqy tokens.

The SEC also alleged that the company’s founders, Bruce Bise and Sam Mendez, sold these unregistered securities to more than 13,000 potential investors with the understanding that customers would earn a small piece of the enterprise’s mining operations. Bitqyck raised more than $13 million in the process, according to the SEC’s complaint.

While customers wound up making a combined total of roughly $4.5 million for referring additional traders to the company’s offerings, they wound up losing more than two-thirds of their total invested wealth, according to the SEC. While neither admiting nor denying the charges (as usual), the owners of Bitqyck have agreed to forfeit more than $8 million in the form of disgorgement, prejudgment interest and civil penalties. Bise and Mendez must each also pay fines of nearly $900,000 to the SEC.

Read the original article here: finance.yahoo.com

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