The Securities and Exchange Commission (SEC) published a report Thursday, Feb. 15 explaining the short-term suspension of buying and selling in three corporations that had made statements about buying cryptocurrency and “Blockchain technology-related assets”.
All three corporations, Cherubim Interests (CHIT), PDX Partners (PDXP), and Victura Construction Group (VICT) have been suspended beginning Feb. 16 for 2 weeks for investor safety functions. The SEC buying and selling suspension orders state that each one three corporations issued press releases that declare that:
“[T]he companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things. According to the SEC order regarding CHIT, it also announced the execution of a financing commitment to launch an initial coin offering [ICO],”
The SEC orders additionally state “there are questions regarding the nature of the companies’ business operations and the value of their assets”.
In late August, 2017, the SEC issued a warning to investors concerning ICOs and the potential for scams, together with causes it would droop buying and selling of an organization “to protect investors and the public interest”. On Jan. 22, 2018 SEC Chairman Jay Clayton warned that corporations that shift their enterprise fashions “on the promise” of Blockchain know-how will face nearer scrutiny from regulators.