SEC Suspends Trading of Company Making Fake Claims Relating to Cryptos

The U.S. Securities and Exchange Commission (SEC) has suspended trading of a company who, it has emerged, has made untrue claims about its cryptocurrency usage.

American Retail Group, Inc. had falsely stated that it was working with a digital asset custodian provider that had received the regulators’ blessing and that its ICO had also been given a green light from the SEC.

SEC Reiterates Importance of Investor Vigilance Towards Crypto

U.S. financial regulatory body, the SEC has today suspended the trading of American Retail Group, Inc. securities.

The reason behind the suspension is that the firm had been claiming to have partnered with an unnamed custodian provider that had, supposedly, received a full blessing from the regulators themselves. The company, which is also known as Semix Inc., had also stated that it was running an initial coin offering that was “officially registered in accordance [with] SEC requirements.”

The news about the suspension of trading comes courtesy of a press release from the SEC themselves. In the document, the regulator states that the claims made by the Nevada-based American Retail Group, Inc. originate from a pair of press releases from the company accused this August.

The financial regulator then went on to reference an investor alert issued by the government body earlier this month. The document advises those wanting to invest in cryptocurrency startups or ICOs to be aware of false claims relating to SEC or Commodity Futures Trading Commission (CFTC) endorsements.

The regulator stated a few examples of the kinds of false claims it is referring to. Those mentioned included advance knowledge of how either agency will approach the space from a regulatory standpoint, using the SEC or CFTC seals on promotional material, and advertising that agency officials were involved with a certain cryptocurrency project.

The agency then went on to state a series of actions that legitimate correspondence with either body would never feature. Included are things such as demanding payment immediately or asking for money over the phone. Finally, it said:

“… federal government agencies, including the SEC and CFTC, do not endorse or sponsor any particular securities, issuers, products, services, professional credentials, firms, or individuals.”

In other SEC news, the financial regulator recently announced that it will be trying to engage the public more in the dialogue about digital currencies and blockchain technology by launching a FinHub portal. This will serve as a reference point between the regulators and the general public on all things crypto.

Featured image from Shutterstock.

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