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SEC Halts Crypto Over Manipulation Concerns After 2,700 Percent Jump

Image: SEC Halts Crypto Over Manipulation Concerns After 2,700 Percent Jump

Tuesday, 19 December 2017 11:23 AM

U.S. regulators temporarily suspended trading in The Crypto Co. over concerns that the stock is being manipulated after it surged more than 2,700 percent this month, making paper billionaires out of top executives.

In a Tuesday order, the Securities and Exchange Commission said it had concerns about the “accuracy and adequacy” of information in the market about the Malibu, California-based company. Questions have also arisen about “potentially manipulative transactions” involving Crypto’s shares, the SEC said.

Through Monday, Crypto’s market value had surged to more $11.9 billion. The company invests in digital assets, and is developing source code for managing them, according to its regulatory filings. James Gilbert, the company’s president, held a stake valued at nearly $4.2 billion based on Monday’s closing price.

The SEC said its concerns include the compensation paid for promotion of Crypto and statements made in regulatory filings about plans for insiders to sell their shares.

Crypto’s jump has attracted the attention of market operator OTC Markets Group, which added a skull-and-crossbones icon next to the company’s stock symbol earlier this month to urge investors to be extra cautious before buying the shares.

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U.S. regulators temporarily suspended trading in The Crypto Co. over concerns that the stock is being manipulated after it surged more than 2,700 percent this month, making paper billionaires out of top executives.
sec, trading, crypto, company
187
2017-23-19
Tuesday, 19 December 2017 11:23 AM
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