The Securities and Exchange Commission in the US has suspended the trading of Hong Kong based UBI Blockchain stock. Despite the company previously saying that it is developing a product tracking system using this technology, UBI will see any trading of its stock frozen from 9:30 this morning until 22nd January.
According to MarketWatch, the market stock has jumped by more than 2,000 percent in the past year and unfortunately, it is this that has caused the suspension. Despite this huge increase, the SEC said that it was to halt all trading due to questions being raised about its recent public filings, as well as the market activity around the companyâs stock.
âThe Commission temporarily suspended trading in the securities of UBIA because of (i) questions regarding the accuracy of assertions, since at lease September 2017, by UBIA in filings with the Commission regarding the companyâs business operations; and (ii) concerns about recent, unusual and unexplained market activity in the companyâs Class A common stock since at least November 2017.â
UBI Blockchain is just the latest of a few firms to have the trade of its stock frozen and suspended by SEC. Several other firms have had their trading halted in recent months, thanks to questions surrounding the veracity of their statements. It is worth bearing in mind though, that these moves were most likely in response to a wave of interest among investors in firms that say theyâre pivoting towards products and services of the tech. This interest though, has sparked warnings from some of the other market watchdogs, which include the self-regulatory organisation FINRA.
Image Source: Flickr