Crypto: The Reason Why Three American Companies Were Suspended by SEC
A new blow comes from the United States of America. The Securities and Exchange Commission has announced on 15 February 2018 about the closure for a specified period of three companies dealing newer with cryptocurrency trading.
The official document was posted on SEC’s website. The companies are Cherubim Interests (CHIT), PDX Partners (PDXP) and Victura Construction Group (VICT). Their suspension will last two weeks in order to solve the inconveniences.
A SEC’s representative claimed that all of the enterprises have approved the statement about their involving in cryptocurrency trading and blockchain system, saying that “The 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 noted since August 2017 that investors should be alarmed about the possible consequences of switching from one business economy to another one that is related to the ICO system, thus affecting some functions of the companies.
In the official document posted on 15 February 2018 by the Securities and Exchange Commission of the United States of America it was also mentioned about SEC’s warnings made this year “The Commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.”
Fortunately for the companies, the suspension is temporary. If we calculate, it would result that on 3rd February 2018, the enterprises will resume their basic activities according to the regulations in force.