The United States Securities and Exchange Commission (SEC) temporarily suspends trading in the securities of crypto exchange Bitcoin Generation, effective from 9:30 pm EDT on April 29 until 11:59 pm EDT on May 10.
As per the announcement made by the government agency on April 29, the decision is “due to concerns about the accuracy and adequacy of information in the marketplace”, in regards to the company’s outstanding common stock, promotional activities and its market impact, along with the current financial condition. The announcement added:
“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.”
Further, brokers and dealers are urged to not to enter quotations relating to Bitcoin Generation’s securities unless they strictly comply with the commission’s rules. Based in Oklahoma, the company has the SEC concerned “regarding the viability and valuation of a bond that Bitcoin Generation purportedly acquired from an entity based in the United Kingdom.”
The aforementioned is purportedly indicating to the acquisition of a €20 million bond in March 2018, which was worth about $24.4 million at the time and sourced from the London Stock Exchange. Deniz Hadjiev, the CEO of Bitcoin Generation, described at the time as a “small step in improving the financial situation of the company as we continue to build our mining operations.”
SEC suspended the trading in securities of a Nevada-based firm during last fall, due to false claims made by the company that its crypto-trading activities were approved by the SEC.
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