Tags: trading | crypto | companies | sec

Trading of 3 Crypto-Linked Companies Suspended by Wary SEC

Image: Trading of 3 Crypto-Linked Companies Suspended by Wary SEC
(Dimarik16/Dreamstime)

Friday, 16 February 2018 12:12 PM

The U.S. Securities and Exchange Commission has halted trading in three companies that claimed acquisitions of assets tied to cryptocurrency and blockchain technologies, saying the agency had questions about their business operations and the value of their assets.

Cherubim Interests Inc., PDX Partners Inc. and Victura Construction Group Inc. had issued similar press releases saying they acquired assets from a subsidiary of a private-equity investor in crypto and blockchain, the SEC said in a statement Friday. Cherubim, which the SEC said was also delinquent in its public filings, additionally announced intentions to launch an initial coin offering, according to the statement. In announcing the trading suspensions, the agency again cautioned investors about companies that may seek short-term stock boosts by touting involvement with blockchain technology.

“This is a reminder that investors should give heightened scrutiny to penny stock companies that have switched their focus to the latest business trend, such as cryptocurrency, blockchain technology, or initial coin offerings,” said Michele Wein Layne, director of the Los Angeles regional office, in the statement. The SEC can suspend trading for 10 days and ban brokers from activity in a stock until reporting requirements are met.

Friday’s announcement comes after SEC Chairman Jay Clayton last month warned companies about changing their names just to cash in on the craze. For months, Clayton has been sounding the alarm about initial coin offerings, a market that he has said is probably full of fraud.

A number of companies have tweaked their names or business strategies in recent weeks to embrace the mania over digital coins and seen their stock prices soar. Long Island Iced Tea Corp. more than tripled after it became Long Blockchain and Eastman Kodak Co. surged more than 200 percent last month after it said it would create a Kodakcoin that could be used to buy photos on an online database.

© Copyright 2018 Bloomberg News. All rights reserved.

   
1Like our page
2Share
StreetTalk
The U.S. Securities and Exchange Commission has halted trading in three companies that claimed acquisitions of assets tied to cryptocurrency and blockchain technologies, saying the agency had questions about their business operations and the value of their assets.
trading, crypto, companies, sec
309
2018-12-16
Friday, 16 February 2018 12:12 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved