Digital Currency Co. Earns SEC Suspension For Suspected Manipulationbr>
The US Securities and Exchange Commission (SEC) has suspended trading on a public over-the-counter digital currency company, citing concerns that its stock is being manipulated.
The suspension, described as temporary, came after shares in TheCryptoCo., a Malibu, Calif. venture that surged more than 17,000 percent in less than three months. That made the company executives in billionaires, at least on paper.
TheCryptoCo. invests in digital assets and is allegedly developing code for managing them, according to its regulatory filings. At the end of September, it held crytocurrencies worth $900,110, filings show. Bitcoin and other cryptocurrencies have since surged to more than $18,000.
The SEC said today that disclosures are not accurate and that investors are lacking information. Insiders have stated plans on selling shares in its filings, and promotions also raised some red flags, the SEC said. TheCryptoCo. has so far generated just a few hundred thousand in revenue, but lost $2.7 million this year. Its stock price, though, gave it a market capitalization of $11 billion.
The SEC has lately ramped up its enforcement efforts. Earlier, it caused an ICO by Munchee to be voided, with the $15 million raised returned to investors.