SEC – [Securities Exchange Commission] recently suspendedcommercewithin thesecuritiesof American RetailGroup,INC(OTC: ARBG) as aresults ofallegations thatthe corporatecreatedfalse statements involving cryptocurrency,as well asthat it had partnered withan“SEC-qualifiedcustodian.”
The accompanying announcement from the agency referencestwoAug. 2018 press releases from the Nevada-based firm,in whichthe corporateclaimed that its cryptocurrencyproductwould be offered “under SEC regulations”andits token sale was “officially registered in accordance with the SECnecessities.”
This camewhenboththe SEC and Commodity FuturesTradingCommission [CFTC] expressedissues concerningthe very factthatadditionalcorporationsarecreatingdishonorableclaimsconcerningthe organizations. Specifically, an investor alert was issued fromthe twoorganizations’respectiveoffices, the SEC’sworkplaceofinvestorsEducation andsupportand also theCFTC’sofficeofclientEducation and out-reach. The agencies warnedconcerningthe employmentof their seal, or advertising advanceinformationof the markets.additionally, the alertoutlinedthatofficersfrom either agency wouldsuggestor demand payment, or endorse any investment, product, or service, in any way.
The SECcansuspendcommercein an exceedinglystock fortendays, ortillcoveragenecessitiesare met,in line withfederal law.RobertCohen, Chief of the SECenforcementDivision’s Cyber Unit,aforementionedof the suspension, “The SECdoesn’tendorse or qualify custodians for cryptocurrency,” and cautioned investors to “use vigilance” with regards to initial coin offerings.
Whileseveralbelieve thatthe mostproblemswith regards totradingin cryptocurrencyare relatedto volatility and vulnerability, hacking , false claimsaboutrestrictiveorganizationsappearto be a growing trend. Earlier this month, the CFTC filed charges against2men for actually impersonating regulators andduplicating documents ina trialto deceive investors. Thecomplaint, filedwithin theU.S. District Court for the Northern District ofTexas, levied charges against2persons, Morgan Hunt and Kim Hecroft,and also the complaintcreatedclear thatit had beenunsurewhether or notthe fraudsurroundingtwopeople, or one individual utilizingtwoidentities.
The defendants,thatoperatedtwobusinesses,known asDiamondsTrading Investment House and1stOptions trading, contactedindividualsand deceived them intobelievingthat their fundscouldn’tbe withdrawn unless a tax was paid to the CFTC. Hunt notsolelyhadanassociate impersonate a CFTC investigatorthroughoutatelephone call communicationbut howeveradditionallylater onforgeda document that bore the official CFTC seal.
Theover-the-countersectoris fardifferentin thatthe businessesaren’tneededto discloseas much data ascompanieslisted on securities exchanges,and also theSEC hadcreatedsimilarcapitalistwarningswithin thepast regarding marijuana in 2014,after severalmarijuana-relatedOTCcorporationswerecreatingfalse claims in their press releases.
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