SEC Suspends Trading of UBI Bitcoin
“The Commission temporarily suspended trading in the securities of UBIA due to (I) queries concerning the truth of assertions, because at least September 2017, by UBIA in filings with the Commission concerning the organization’s business operations; and (ii) concerns regarding recent, odd and unexplained market action in the organization’s Class A common stock because at least November 2017.”
Shares in UBI Blockchain traded as large as $115 after selling for only $0.55 less than a year past; a few weeks ago it had been trading at about $9. Bloomberg is reporting that UBI Blockchain has only 18 employees, no earnings, $15,406 bucks in cash available and $6.3 million in debt. UBI registered with the SEC at September 2017 for a projected sale of 72.3 million shares of stock by its own executives, but the telephone number listed in the filing has been disconnected. The talk stop started January 8, 2018, and will run through January 22, 2018.
Latest in a Series of Scam Crackdowns
On December 19, 2017, the stocks of The Crypto Company were stopped from the SEC over worries of real trading. The shares had surged in price by 2700 percent in one month. The block went through January 3, 2018, which saw the stock drop to $175 from the high of $642. Their 10-Q filing reveals cause for concern: The organization, which rebranded in July of 2017, had less than $600,000 in revenue, the majority of that was from trading cryptocurrency. The inventory during its greatest gave this business with apparently few people and no item, a market cap of $6.5 billion.
Also in December, the SEC Stopped the Munchee ICO and the Plexcoin ICO. Munchee ran afoul of the SEC by highlighting they were producing a secondary market as an investment vehicle long ahead of time of the usefulness of this token being made accessible. The SEC complaint claimed that their dividend was considered a safety irrespective of their usefulness in the time of their sale. Munchee agreed to the SEC’s order without admitting to or denying the findings and returned the shareholders’ money.
The SEC took a considerably heavier hand with Plexcoin, as their brand new Cyber Unit registered its initial fees since being made in September 2017 to concentrate on misconduct involving dispersed ledger technology (DLTs) and initial coin offerings (ICOs). The strategy included a recidivist Quebec securities law violator, Dominic Lacroix, along with his spouse, Sabrina Paradis-Royer.
Chief of this Cyber Unit, Robert Cohen, stated, “This original Cyber Unit case strikes every one the qualities of a full size cyber scam and is precisely the type of misconduct that the unit will be chasing. We acted quickly to protect retail investors out of the initial coin offering’s false promises.”
Back in September 2017, the SEC had a dual hitter with two firms out of 1 individual, Maksim Zaslavskiy. He had been accountable for REcoin, touted as “the first cryptocurrency backed by property,” along with the Diamond Reserve Club. Neither firm performed any of those activities they claimed they’d and had any of those tools touted. The SEC obtained an emergency court order to freeze the assets of Zaslavskiy along with his companies.
Just today, we’ve got news breaking the CEO of Fantasy Markets, ” Jonathan Lucas, has disappeared with investors’ money.
The SEC has also issued an announcement regarding celebrity endorsements of ICOs from concern for innocent prospective investors who might be swayed by big titles promoting dubious products.
Considering that the SEC began to listen to ICOs last summer, they have been carrying a fairly understanding position when dealing with authorities. Andrew J. Chapin, the CEO of Benjacoin for instance, explains how the SEC contacted him regarding his forthcoming ICO so as to talk about what he and his firm were intending. He states that he was thankful he took the call and heard the “correct way” to do things, rather than ignoring it and trying to skirt round the regulations. Therefore, in those early days, it looks like the SEC is providing businesses an chance to make things up to now, without assessing penalties or fines. But how long that’ll last is anybody’s guess at this time.