In 2020, under former SEC Chairman Jay Clayton, the SEC charged BitClave with selling Consumer Activity Tokens (CAT) in violation of federal securities laws. BitClave settled the charges without admitting any wrongdoing and agreed to forfeit all of the funds raised in 2017, plus an additional $4 million in interest and penalties. It also agreed to destroy all uncirculated CAT and request exchanges to delist it as part of the settlement agreement.
