The SEC is getting more aggressive in halting crypto and "blockchain" fraud schemes.
Less than three weeks after the SEC halted trading in The Crypto Company, a shell of a company which notoriously soared to an $11 billion market cap on nothing tangible, just an extension of the bitcoin mania, the market regulator on Monday cracked down again, announcing that shares of another Chinese blockchain technology company would be halted.
Specifically, the SEC suspended trading in shares of UBI Blockchain Internet, a Hong Kong-based company that advertises blockchain programs and services. The market regulator said it froze trading of UBI shares because of potentially inaccurate information the company filed in its disclosures to the agency and "recent, unusual and unexplained market activity" around UBI stock since November.
The trading suspension spans from 9:30 a.m. on Monday through 11:59 p.m. on Jan. 22.
UBI Blockchain, whose market value tops $800 million, had been riding the digital currency frenzy to stock market glory despite posting no revenue and including a disconnected phone number in its filings with regulators according to Bloomberg.
Founded in 2010 as JA Energy, the company - like so many others - changed its name to reflect its blockchain operations in November 2016. UBI was one of several companies involved or allegedly involved in blockchain or cryptocurrency technology that investors flooded with cash last year. UBI said it plans to harness blockchain so that consumers can “trace a food or drug product from its original source,” according to its SEC filings.
As a result, shares of UBI jumped from $7.20 on Dec. 8 to $87 on Dec. 18 as cryptocurrency prices and equities in blockchain companies skyrocketed. At one point, the stock traded as high as $115 after selling for 55 cents last February. The surge made this over-the-counter stock one of the most-valuable public companies in the bitcoin universe.
At least someone managed to take profit: UBI stock fell back to $22 on Friday, the last day of trading before the SEC freeze.
And speaking of selling, Bloomberg reported on Dec. 27 that UBI registered to sell an additional 72.3 million shares owned by executives. It appears that for once the SEC stepped in before management could take advantage of even more greater fools.
Recently, the SEC has warned investors last week of rampant illegal trading in cryptocurrencies and initial coin offerings (ICOs). The CFTC also announced last week that it will meet on Jan. 31 to discuss the trading of cryptocurrency futures contracts.
The agency says that its technology and risk advisory committees will meet to discuss the self-certification process for such derivative contracts, focusing on “oversight, surveillance, and monitoring” of listed cryptocurrency derivatives.
Comments
So now we know this is one of the Cryptos they can't control -- just buy the cryptos from America so when they tank, it will be the American banks that can front run them instead of the Chinese banks. Lol, so many other cryptos went up way more than 900% like Ripple
Robot HFTs have ruined stock market price discovery and trading for the better part of a decade while the SEC slept, but suddenly the SEC is Johnny-on-the-spot when it comes to blockchain pump-and-dump stocks?
I've said it before but I'll say it again: the SEC is a kike catspaw who's job is to go after enemies of the (((global financial system))) while simultaneously anesthetizing the goyim with the lie that the (((markets))) are "regulated" for their benefit with a simulacrum of "fairness".
In reply to So now we know this is one… by YUNOSELL
Um, no ... the SEC has been wide awake playing for pay via the wicked witch of the north and her Soros funded enabler in chief.
Give the new folks a chance ... or don’t, lol, but make the appropriate distinctions.
In reply to Robot HFTs have ruined stock… by Buckaroo Banzai
OK, not asleep, but retards with blinkers on who go only where they are told to go, and stay away from things they are told not to touch.
In reply to Um, no ... the SEC has been… by null
So how do you access your account, sign out, sign in, etc. there seems to be no way to do this.
Nice head fake!...
"Janet" & friends want ya to keep buyin it so they can track ya better!!!
P.S.
And when you know for certain that it's a "VERY DESPERATE HEAD FAKE" as China "allegedly" kicked those mining servers all the way to Canada (https://www.zerohedge.com/news/2018-01-05/bitcoin-miners-migrate-china-…) what a difference 3 days can make?...
Hmm... And only 59 comments on that biggest story?...
Now the governments start waging wars against crytos. Who said governments have no control of this crap?
I did. They don’t. Please let them try. Just like I couldn’t wait for sessions to attack weed, I can’t wait for governments to attack Bitcoin. Let’s do this. Put it to the ultimate test. Short of shutting down the internet there’s not fuck all they can do. Will bitcoin price drop? Yes. Will it go to zero? Fuck no. The drug kingpins love it.
In reply to Now the governments start… by ilovetexas
Why did the SEC allow these jokers on the exchanges in the first place? Too busy watching porn I guess.
No fucking way, must be fake news!!! SEC never halts trading of a company for being a blatant scam!
There's the weakness of cryptos. If the government can interfere in any way, they fall short of their potential. Sorry guys. Banks and government approved stuff first.
wouldn't it be great if the SEC started going after politicians that insider trade? oh wait, they can't... you know, freedom and democracy and other such things
Governments simply cannot allow private "currencies" to compete with their own as a medium of exchange for good and services and most have no choice but to crack down. They must have the ability to control the money supply either adding or removing as economic conditions dictate. Currently the total capitalization of these is small but left unchecked can have the same effect as increasing the money supply when used as a medium of exchange and when the velocity of money increases this will cause inflation and lower living standards. Folks this is ECON 101.
Most countries like China and South Korea are making them illegal to use any tokens like bitcoin and ethereum as a media of exchange and also claiming all ICOs fall under existing securities laws which they do. If you raise capital thru the public by selling a financial instrument that can rise or fall in value this is in fact a security and the burden of proof falls on the issuer to file a registration statement. This is the same for shares, bonds or tokens. If I form a company and it has no assets or income stream and I want to raise capital thru the public, I must have a detailed business plan outlining how I am going to create an income stream and the time frame to be profitable. This will have so many disclaimers that only those who can afford to lose their capital would invest. Now if this is done the SEC could care less who buys the shares as from a legal prospective you and the SEC have met all the legal requirements in notifying prospective investors that is is a highly risky and speculative investment. Currently with most ICOs you have none of this hence the SEC crackdown. They are forcing issuers to provide the required disclaimers which can only be legally done thru a registration statement. They are simply attempting to stop the scams and there are plenty.
As a former Compliance Officer at the NYSE firm, I see no reason why the SEC would not approve a registration statement if all the legal requirements are met and only traded on an exchange and profits must in settled in cash with all the disclaimers of "buyer be ware"! Since the issuer and the exchange must file quarterly and year end filings the SEC then knows if there is financial difficulties and need to take a further look. Regardless what you read on the net, this is about protecting the public. Of course this is not legal advice and simply my opinion!
When is the SEC going to halt trading of AMZN & TSLA? They fit perfectly into this criteria.
The SEC is a complete fucking joke... To the big players.
But if some shrimp gets out of line they get their big pink granny panties in a wad! The SEC should be shit and flushed, nothing but tools.
Stop it, SEC! Frontier Capitalism style of Price Discovery is the heart & soul of Austrian Economics and hardcore libertarianism.
I am a libertarian and like price discovery, but this time, I agree with the SEC. Some people are not very smart, they will lose lot of money. But it's not a long time solution. The SEC needs to come up with something... to support businesses.