FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst/File Photo
WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission said on Thursday it fined and settled charges against a Texas-based cryptocurrency firm and its founders for wrongfully issuing digital offerings and for using an unregistered online trading platform.
Wednesday’s settlement comes amid a broader SEC crackdown on token offerings in which it has settled nearly 40 charges against cryptocurrency start-ups in recent years, according to an agency database.
Bitqyck, and its founders Bruce Bise and Sam Menendez, gained $13 million from creating and selling its unregistered securities offerings to more than 13,000 investors.
The SEC alleged that the defendants told investors that one of its tokens, Bitqy, would provide fractional shares of the firm’s stock through a smart contract, while its other token, BitqyM, would provide investors interest in a…