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SEC Investigates Nevada ICO Company

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Traders ought to be cautious of any firm launching an ICO and claiming SEC endorsement or regulatory compliance.

The US Securities and Alternate Fee (SEC) has ordered a suspension of trading within the securities of Nevada-based American Retail Group Inc. Buying and selling is suspended for ten days from 9:30 am EDT October 22, 2018, by way of 11:59 pm EDT on November 2, 2018.

In accordance with SEC laws, as a result of the securities of the American Retail Group (ticker image: “ARGB”) are quoted on OTC Hyperlink, quoting won’t mechanically resume when the 10-day suspension ends. As described by the SEC in an investor bulletin on buying and selling suspensions, “OTC markets operate by way of vendor programs the place solely broker-dealers might quote and facilitate buying and selling in OTC shares.” Underneath this method, after the top of a buying and selling suspension, a broker-dealer should be assured that the securities-issuing firm’s monetary statements are “fairly present and correct in all materials respects, particularly in mild of the questions which will have been raised by the SEC suspension motion” earlier than publishing a inventory quote.

In keeping with the SEC order, American Retail Group Inc. revealed press releases in August that claimed it had partnered with an “SEC certified custodian,” and that the token providing was registered “in accordance to SEC necessities” and laws.

The primary press release, revealed on August 16, advised buyers that the corporate was collaborating with Prime Belief and claimed that the monetary establishment was capable of present them with “SEC certified custodian and escrow companies.”

Nonetheless, Robert A. Cohen, the chief of the SEC Enforcement Division’s Cyber Unit said within the fee’s personal press release on the matter: “The SEC doesn’t endorse or qualify custodians for cryptocurrency, and buyers ought to use vigilance when contemplating an funding in an preliminary coin providing,”

Simply final week, the SEC issued a consumer alert warning buyers about false claims associated to SEC endorsements.

The second press release in query, which introduced American Retail Group’s preliminary coin providing (ICO), was revealed on August 22 of this 12 months. The issue the SEC had with this press launch is that it particularly said that the coin providing was “formally registered in accordance [with] SEC necessities.” Though the SEC has proposed rules and laws regarding ICOs, these guidelines have but to turn into legislation.

The SEC has been cracking down on false statements made by companies working within the cryptosphere. In September, it announced it was investigating Crypto Asset Administration LP (CAM) for claiming it was regulated and registered with the SEC. Earlier this month, the SEC launched an investigation of crypto startup Blockvest LLC for allegedly falsely claiming SEC regulatory approval and illegally utilizing the SEC brand to provide credibility to its claims.

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Written by Rebecca

Rebecca has been actively following cryptocurrency since he was introduced to Bitcoin in August of 2013. Since then, she has spent much of his time participating in the community, trading altcoins, and freelance writing within the cryptocurrency field. She is currently an undergraduate student pursuing a double major in Economics and Computer Science, which he plans to use towards a career in the blockchain industry after graduation.

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