Airfox announces SEC settlement and compliance update

Boston FinTech expands digital banking platform with U.S. regulatory compliance

Airfox today announces an update on its settlement with the U.S. Securities and Exchange Commission (SEC) related to the issuance of AirTokens in its 2017 initial coin offering (ICO). As part of the settlement, a claims process was made available to individuals who acquired AirTokens from Airfox during the ICO. The rescission period officially came to a close on September 28, 2019. All claims forms were processed in accordance with the terms and provisions set forth in the SEC Order, and Airfox will pay all eligible claims by December 28, 2019.

Airfox was founded by ex-Googlers, incubated at TechStars Boston and Harvard Innovation Launch Lab, and represents the work of an immigrant whose family faced financial exclusion during his childhood. Airfox continues to expand its diverse team of experts working to provide disruptive banking services in emerging markets.

“We are very excited that Airfox is the first company to settle with the SEC and comply with its mandate while still growing our business and expanding our platform,” said Victor Santos, CEO and founder, Airfox. “Thanks to our community’s support, Airfox has continued to thrive, having launched mobile-first banking services for emerging markets starting with Brazil. banQi, our newly rebranded mobile banking app has currently enabled lower-income Brazilians to successfully receive free banking and soon more affordable and accessible credit. Airfox has also deepened our partnerships with Via Varejo and Mastercard to continue our mission to accelerate financial inclusion in Brazil.”

Airfox launched banQi in June 2019 in Brazil; rebranding the Airfox app to be more accessible to the Brazilan market.

There were around 2,500 ICO participants in 2017, and Airfox received only 174 claim forms during the claims period. Of those claims, 93% (163) have been accepted. No claims received before the deadline were denied based on typographical errors or minor inconsistencies.

Airfox’s banQi app is part of the in-store retail experience.

Airfox remains focused on its ultimate goal of creating an inclusive new mobile banking system that benefits all, especially those that lack access to traditional financial institutions. This year, Airfox secured new high-profile partnerships — including contracts with mobile payment leaders Mastercard and Cielo — that expand on its existing partnership with Brazilian retail giant Via Varejo. The new Airfox contracts support continued growth of its teams in both Boston and Brazil, and accelerated execution on its mission to increase access to high-quality financial services. Airfox remains committed to its blockchain initiatives and its vision to build a decentralized peer-to-peer lending solution to underwrite more affordable capital to bottom of the pyramid Brazilians who lack access to affordable credit.

The banQi prepaid card can be used anywhere in the world Mastercard is accepted.

About Airfox

Airfox is on a mission to accelerate financial inclusion for the underbanked in emerging economies by creating an entirely new financial services model that democratizes access to capital and financial services with a mobile-first solution. Airfox is a venture-backed, financial technology company incubated at TechStars and launched in Harvard Launch Lab by a Brazilian immigrant who’s working to provide solutions to a problem he experienced personally. Airfox is based in both Boston and São Paulo. To learn more about the company visit www.airfox.com.

The Airfox team has grown significantly in Brazil with two offices in São Paulo including a call center to handle incoming user questions 24/7.

Airfox Media Contact: Ashley Nakano, airfox@sterlingpr.com