SEC suspends trading at Oklahoma-based exchange
Many cryptocurrency traders and investors are keeping their eyes on exactly how the Securities Exchange Commission (SEC) responds to the cryptocurrency sector, with the hopes that the agency will eventually offer some more clear guidance in the space as to what exactly a digital asset is, and what initial coin offering (ICO) regulations will be.
In the latest case, the SEC has suspended trading related to a cryptocurrency mining firm and exchange. The company is called Bitcoin Generation (BTGN) and has a relatively low profile with respect to the cryptocurrency sector. The company is publicly traded and was founded in 2017.
Based in Bartlesville, Oklahoma, BTGN is being penalized for a bond acquired “from an entity based in the UK.” The SEC appears to question the valuation of the aforementioned bond, as well as the promotional activity surrounding the company. The SEC also seems to believe that the exchange is misleading investors, openly questioning the “accuracy and adequacy” of BGTN’s financial condition.
The press release describing the acquisition in March 2018 says the bond was worth $20 million Euros. The company also claims that it was able to purchase the bond thanks to its own cryptocurrency, Bitcoin Generation Coins, or “BCGc”. At the time, Deniz Hadjiev, president and CEO of BTGN, called the move a “small step in improving the financial condition of the company” while also acknowledging that it would help with cryptocurrency mining operations.
BTGN markets itself as the “first publicly traded cryptocurrency exchange” and claims to be a “premier trading and financial technology company” that offers exceptional customer service. The website also claims that the company owns mining facilities with tens of thousands of machines. The platform offers cryptocurrency trading for Bitcoin SV (BSV), Bitcoin Core (BTC), Litecoin, Ethereum, Monero and Ripple.
The SEC clearly stated they believe potential investors should know about these concerns, declaring that broker-dealers, shareholders, and potential investors should ‘carefully consider the foregoing information” before investing. The SEC also provided contact information for various SEC employees should anyone have additional information.
The company will resume trading May 10. BTGN was last trading at 9 cents.
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