SEC Has Suspended Trading Of A New ICO
On Monday, The U.S. Securities and Exchange Commission suspended American Retail Group, Inc. due to false crypto claims. The company offered Initial Coin Offering (ICO) to its clients falsely ensuring them that the tokens are secure.
The United States struggles with frauds who take advantage of the blockchain technology. Last week, a few ICOs were banned in North Dakota. On Friday, US Marshals announced an auction of over 600 bitcoins from financial crimes. Then, there was the Ponzi scheme.
“The best lies about me are the ones I told” – Patrick Rothfuss
Securities and Exchange Commission released a statement on its website yesterday. The commission suspended the trade in securities of the company due to the questions of false claims.
SEC suspends trading in company for making false cryptocurrency-related claims about SEC regulation and registration https://t.co/Ls4xMgG9P1
— SEC_News (@SEC_News) 22 października 2018
American Retail Group, Inc. aka Simex was founded to “support foreign companies that are looking to break into the American Retail market”, according to its website.
The company claimed in August that they had partnered with SEC – a qualified custodian for the cryptocurrency use. Later, Simex offered an “officially registered in accordance [with] SEC requirements” token sale. There’s only one problem: the commission has never approved that ICO.
Follow the rules, please
The SEC tries to get rid of scams in ICOs. Earlier this month, the commission issued an investor alert warning investor about false claims about SEC endorsements. Robert A. Cohen, Chief of the SEC Enforcement Division’s Cyber Unit, said:
“The SEC does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering.”
The SEC can suspend trading for 10 days and publicly prohibit a dealer from soliciting investors to buy or sell the token again.
The exchange regulator has also launched a website with additional information about the ICO laws.
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