Some investors from the now-defunct crypto company BitClave are set to receive refunds along with interest, as the U.S. Securities and Exchange Commission (SEC) announced on Wednesday.

“The checks are in the mail,” the SEC stated on its social media account, X, on Wednesday afternoon.

According to the SEC, the BitClave Fair Fund has distributed about $4.6 million back to investors who participated in the 2017 initial coin offering (ICO) of BitClave. This ICO raised $25.5 million from investors in only 32 seconds during the ICO boom.

In 2020, the SEC, under the leadership of Jay Clayton, filed a lawsuit against BitClave, claiming the sale of its Consumer Activity Token (CAT) breached federal securities laws. Although BitClave agreed to settle without admitting any wrongdoing, it consented to forfeit all funds raised in 2017, alongside an additional $4 million in penalties. Furthermore, it committed to destroying any uncirculated CAT and urged exchanges to delist it as part of the settlement agreement.

While BitClave was mandated to pay roughly $29 million to the SEC's investor compensation fund, only $12 million had been submitted as of February 2023. Eligible investors needed to submit their claims by August 2023, and this past March, the SEC communicated the outcomes of these claims.

The remaining balance of $7.4 million in the BitClave Fair Fund remains uncertain. The SEC and fund administrators have not responded to inquiries regarding the discrepancy between the disbursed amount and what remains in the fund.