SEC Suspends Trading In The Securities Due To False Claims
SEC suspended trading in American Retail Group securities this morning, as a result of allegations that the company made false statements related to the cryptocurrency, including that it cooperated with a digital asset provider.
The Agency’s accompanying statement mentions two press releases dated August 2018 from a Nevada-based firm in which the company stated that its cryptocurrency products would be offered “in accordance with SEC rules” and that the token sale “is officially registered in accordance with SEC requirements.”
This happens after the SEC and the Commodity Futures Trading Commission (CFTC) expressed concern about the fact that more and more companies make fraudulent claims against organizations.
The SEC may suspend trading in shares for 10 days or until the reporting requirements are met, in accordance with Federal law.
While many believe that volatility and vulnerability to hacking are the main concerns regarding cryptocurrency trading , false claims about regulatory organizations seem to be becoming a growing trend. Earlier this month, the CFTC charged the two men for actually impersonating regulators and forging documents in an attempt to Scam investors.