SEC Suspends First Bitcoin Capital Over Assets Concerns

Announcements, FinTech, ICO News, Investing, News | August 24, 2017 By:

UPDATE:  First Bitcoin Capital has issued a response to the SEC suspension.

The US Securities and Exchange Commission (SEC) has temporarily suspended publicly traded First Bitcoin Capital, citing concerns over alleged misleading public information by the Canada-based corporation, including the value of assets it controls and its capital structure.

The suspension took effect at 9:30 a.m. EDT today and will last at least until 11:59 a.m. EDT on Sept. 7. First Bitcoin shares are traded over-the-counter. The company violated section 12(k) of the Exchange Act, the SEC alleges, causing the suspension. First Bitcoin Capital operates a bitcoin exchange and an ATM network.

“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,” said the SEC statement.

First Bitcoin Capital did not immediately respond to a request for comment. Its suspension marks the second cryptocurrency business to run afoul of the SEC this month. Earlier, it suspended the shares of CIAO Group, also an OTC firm, in response to concerns over its initial coin offering (ICO) statements.

The SEC has recently taken notice of ICOs and issued guidelines for their outreach, indicating that many are subject to the same scrutiny that other securities require.