Blockchain Firm UBI’s Stock Suspended By The SECbr>
The Securities and Exchange Commission (SEC) has issued a temporary suspension of securities trading for Hong Kong-based UBI Blockchain Internet. The company will see trading of its stock frozen from January 8 until January 22.
UBI does not have significant operations. It was previously engaged in designing a suite of modular, self-contained, automated, and climate controlled units for distributed production of energy. The company was formerly known as JA Energy and changed its name to UBI Blockchain Internet, Ltd. in November, 2016. The company was founded in 2010 and is headquartered in Hong Kong. The company operates as a subsidiary of Almost Never Films, Inc.
The SEC said it issued the suspension based on inaccurate information the company filed in its disclosures to the agency and “recent, unusual and unexplained market activity” around UBI stock since November. According to reports, UBI’s stock surged from $9 to $87 in just one week last month, before returning to $22 today.
“The Commission temporarily suspended trading in the securities of UBIA because of questions regarding the accuracy of assertions, since at least September 2017, by UBIA in filings with the Commission regarding the company’s business operations,” the regulator said. “And concerns about recent, unusual and unexplained market activity in the company’s Class A common stock since at least November, 2017. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).”
UBI is not the first firm to have the trade of its stock frozen by the SEC. Last month, the regulator temporarily suspended trading in shares of The Crypto Co., whose stock has surged more than 2,700 percent in one month’s time. The SEC cited concerns about potentially manipulative trading. On Monday, the company’s shares traded at $175, down 69 percent.