Cryptocurrency News Today: Blockchain startup agrees to $23M settlement over allegedly fraudulent tokens
The US’ top financial watchdog has settled with Dallas-based Blockchain startup Bitqyck Inc. over allegations it fraudulently sold shares of company stock to more than 13,000 buyers of its Bitqy cryptographic token.
In a statement released yesterday, the US Securities Exchange Commission (SEC) also alleged the firm and its founders Bruce Bise and Sam Mendez fraudulently promised investors interest in a Cryptocurrency mining facility through sales of a secondary token, BitqyM, and its related Blockchain-powered smart contract.
That facility was supposed to be powered by below-market rate electricity. As it turns out, there was no such deal, and no such facility – the entire mining operation was a fake.
“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,” said the SEC.
Although Bitqyck’s fo