The SEC at it again with false advertising punishments

The SEC has been extra vigilant these couple of months as new companies have been piling up on the cryptocurrency decentralization. In today’s case, The Securities and Exchange Commission has suspended a company’s right to trade securities because of some false information it may or may not have disclosed in the past.

What’s important to note here is the fact that SEC has been chasing companies on things they have said and is holding them accountable. This is nothing new as the regulator stirred up quite a hurricane of tweets a couple of weeks ago when it fined Tesla and Elon Musk for disclosing false information. This time it is no different as the regulator disregards criticism and continues its path of the purge.

False advertising

The Securities and Exchange Commission is claiming that there were two press releases in August 2018 made by the accused American Retail Group, Inc. based in Nevada. More specifically, the company aka Simex, Inc. announced that it had partnered with an SEC qualified custodian in order to conduct cryptocurrency transactions under SEC laws. Not only that but the company also promised Initial Coin Deposits (ICO) under the regulatory body’s jurisdiction, which is obviously false.

This was obviously not the first time this had happened, because the SEC deemed it important and necessary to issue an official alert to all of the investors earlier this month. The regulator announced that many companies were falsely claiming that they were SEC approved for digital asset investments.

The Securities and Exchange Commission has clearly stated their stance on the whole Initial Coin Offerings ordeal. They have mentioned many times that the regulator does not endorse or qualify any custodians for the cryptocurrency. They once again advise investors to be careful and not believe any companies marketing their activity as SEC approved.

For those who believe that the SEC’s actions were unwarranted, please note that the regulator has the right and jurisdiction to suspend trading of a stock for 10 days or completely prohibit a specific broker from conducting any trading activity until the required information is delivered and analyzed by the regulator.

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Konstantin Rabin

About the Author: Konstantin Rabin

Konstantin has been working in the financial services industry since 2011. He is over-viewing various updates in the technology, regulation, and market movements. He's passionate about games and has a cute cat named Dog.

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