SEC Suspends Trading in Company Making False Cryptocurrency-Related Claims About SEC Regulation and Registration

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By: Richard B. Levin, Peter F. Waltz and Robert W. Wenner

“The SEC is serious about digital asset companies not making false claims that their offerings are regulated or registered with the SEC,” notes Richard Levin.

The U.S. Securities and Exchange Commission has suspended the trading of securities of a American Retail Group, Inc., based on its statements about partnering with a claimed SEC-qualified custodian for use with cryptocurrency transactions and a purportedly registered public offering of preferred stock.  The agency reminded the public, “[t]he SEC does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering.”