The Securities and Exchange Commission has halted trading on a hot bitcoin stock until at least early next year. Regulators are concerned about “potentially manipulative transactions” in The Crypto Co (OTCMKTS:CRCW)’s stock and the “accuracy and adequacy” of information about the company that’s currently circulating in the marketplace.
Bitcoin stock skyrockets in trading
On Tuesday, the SEC suspended trading on shares of The Crypto Co until Jan. 3. In the press release announcing the suspension, the agency said it was concerned about some of the information regarding payments made for marketing and statements made by insiders and officers about their plans to sell their stock.
According to its website, the Crypto Co “provides institutions and individuals direct exposure to the growth of global blockchain developments.” The firm states that it serves “blockchain entrepreneurs, businesses and governments who are committed to building the future of blockchain technologies.” The website also states that it speeds up growth by providing funds, “insights into innovation, strategic and regulatory advice, business development and curated introductions.”
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The Crypto Co recently announced plans for a 10-to-1 stock split. CEO Mike Poutre said in the press release about it that they “do not want to be associated with” any of the companies that are “taking advantage of the euphoria associated with this space.” He also stated that they wanted trading to be “orderly” and for average individual investors to be able to afford their stock. When the SEC suspended trading, the shares were at $575.
Bitcoin mania continues
The Crypto Co is traded on the OTCMKTS exchange, and its stock has exploded this week along with other bitcoin stocks. The Crypto Co skyrocketed by almost 160% in just the last five days and more than 2,700% this month. The company went public over the summer, according to CNBC, by acquiring the “developmental stage fitness apparel company” Croe.
The SEC has begun cracking down on potential cryptocurrency frauds and scams as the shares of several small firms have skyrocketed this month after announcing that they were doing something with bitcoin, cryptocurrencies or the blockchain.
On Monday, regulators halted trading in Longfin stock after it surged by more than 2,500% following the news that it is acquiring Ziddu, a blockchain-based micro-lender. The SEC has also been cracking down on initial coin offerings. In August, regulators halted trading in three stocks temporarily because of questions about the companies’ claims about ICO investments or other token news.