Company Suspended By SEC Over Fake Crypto Claims
The US Securities and Exchange Commission (SEC) has suspended trading in a firm for making several fake claims related to digital currencies. Some include the firm's partnership with a SEC qualified custodian, regulated cryptocurrency transactions and tokens which are fully registered with the commission.
Earlier in the week, the SEC revealed that they have temporarily suspended trading in the securities of American Retail Group Inc. for, in their words:
âMaking false cryptocurrency-related claims about SEC regulation and registration.â
In referencing the Retail Group, the SEC stated:
âThe company [claimed it] had partnered with an SEC qualified custodian for use with cryptocurrency transactions that would be âunder SEC regulations,â and that the company was conducting a token offering that was âofficially registered in accordance (with) SEC requirements.â
The Retail group, previously known as Resource Acquisition Group, is a corporation from Nevada with stock quoted on OTC Link, regulated alternative trading system owned and operating by OTC Markets Group Inc.
According to the Retail Group filing with the SEC:
âThe companyâs purpose is to seek, investigate, and â¦ acquire an interest in business opportunities presented to it by persons or firms who or which desire to seek the perceived advantages of an Exchange Act registered corporation.â
The company is also known as Simex Inc., after being acquired in May this year. According to the Retail Group, Simex has developed is, âcommercializing a multi-functional online international digital asset management, investment and trading platform that is capable of buying and selling cryptocurrencies, tokens and conventional currencies.â
The Exchange Commission issued an investor alert earlier in the month which warned about firms making fake claims of its endorsements used to push digital currency investments.
As stated by the Chief of the SEC Enforcement Division Cyber Unit, Robert Cohen said:
âThe SEC does not endorse or qualify custodians for the cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering.â
As said by Bitcoin.com, the agency went onto explain that under the federal securities laws they can suspend trading for ten days and generally prohibit a broker-dealer from soliciting investing to buy or sell the stock until certainly reported requirements are met.
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