Below is a snippet or an article from Finance Magnates.
The U.S. Securities and Exchange Commission on Friday suspended trading in shares of three companies due to questions about their recent PRs which advertised the buyout of cryptocurrency and blockchain-related assets.
The financial regulator cited concerns regarding the accuracy and adequacy of information about acquiring top rated assets from a cryptocurrency investor, among other things. Perhaps that piqued the regulator’s concern, in particular after on of the suspended firms also announced plans to arrange an initial coin offering (ICO).
The US top regulator warned investors against throwing money into the digial crowdsale because the organizers intended to launch a cryptocurrency-based investment scheme without even attempting to follow US securities laws.
The Commission temporarily suspended trading in the securities of Cherubim Interests Inc. (CHIT), PDX Partners Inc. (PDXP), and Victura Construction Group Inc.
The SEC’s decision comes as interest in the technology that underpins bitcoin and other virtual currencies has emerged as a powerful investing theme. Several firms saw its stocks price almost triple in a day just for adding the word ‘blockchain’ to their brand names or announcing plans to launch technology-based products.