Business 1 year ago

Jasmine Solana

Bitcoin firm in hot water with SEC after shares surge more than 6,000%

A publicly traded Canadian bitcoin company has caught the watchful eye of the U.S. Securities and Exchange Commission after its stock ran up more than 6,000 percent in 2017.

In a statement, the SEC announced that it has suspended trading in securities of First Bitcoin Capital Corporation (BITCF) starting August 24 until 11:59 a.m. on September 7, 2017, citing concerns that the company may have not been telling the whole truth about its corporate structure.

“The Commission temporarily suspended trading in the securities of BITCF because of concerns regarding the accuracy and adequacy of publicly available information about the company including, among other things, the value of BITCF’s assets and its capital structure,” SEC said.

The suspension was announced before the company opened for trading on Wednesday. First Bitcoin Capital’s shares, which were traded over the counter, held at US$1.79 apiece prior to the suspension, according to Bloomberg data.

First Bitcoin Capital’s stock price reached a high of $2.70 last August 14, from less than $0.30 last December 31.

On its website, the Canada-based company said it develops digital currencies and proprietary blockchain technologies, and operates digital currency exchange CoinQX as well as a network of ATMs.

“The reason we have been able to succeed without external funding is due to the fact that we early learned how to develop crypto assets on a shoe string, so to speak. This also resulted in our being able to pay off our debt which was owed to management with one of our created crypto currencies,” the company said in a statement, noting that its management has yet to sell a share of First Bitcoin Capital’s stock in spite of the rise in price per share.
First Bitcoin Capital called the suspension an “unfortunate” incident, which they are currently working to resolve.

“We believe that there is likely a misunderstanding or a simple clarification necessary and it would have been better for the SEC to ask us for this information before taking such drastic action,” the company said.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Satoshi Vision (BSV) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BSV is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.


Add a Comment

lastest news

Blockchain startup raises $24M for digital rights management

Business 9 hours ago

Blockchain startup raises $24M for digital rights management

Bluecoat, a blockchain company specializing in digital rights and royalties distribution, has already raised $24.25 million in funding, with notable personalities in the music industry assisting with the funding. In its press release, the company ...

Read More
Bitmain shuts down Israel office, leaving all 23 employees jobless

Business 10 hours ago

Bitmain shuts down Israel office, leaving all 23 employees jobless

After nearly three years of activity, Chinese crypto mining giant Bitmain is reportedly ceasing its Israeli operations this week. Citing sources familiar with the matter, Israeli news outlet Globes reported on Monday that Bitmain’s development ...

Read More
Warning: Scam site mimicking

Business 14 hours ago

Warning: Scam site mimicking

We're sending a warning to people in and out of the crypto industry. There is a website trying to cheat unsuspecting users looking to visit  The individual or group is utilizing a common tactic ...

Read More