Today, ARGG also-known-as Simex found itself on the wrong side after claiming SEC’s approval two months ago.
According to the United States Securities and Exchange Commission, the Nevada based American Retail Group issued press releases in August this year falsely claiming that the “company has partnered with an SEC qualified custodian for use with cryptocurrency transactions that would be ‘under SEC regulations.’”
Learning of these claims, the Securities and Exchange Commission suspended trading in the securities of the company and issued a statement distancing itself from any involvement with Simex’s approval claims.
In the recent past, the SEC has made a similar reaction after learning that a cryptocurrency-related firm is falsely claiming SEC and CFTC’s approval to attract investors to buy in on their tokens.
The Securities and Exchange Commission has been in the forefront warning investors and the general public that to be extra cautious when dealing with virtual currency firms purportedly flaunting SEC badges of approval.
Robert A. Cohen, Chief, Enforcement Division Cyber Unit, SEC, said that “the SEC does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering.”
The SEC was invoking section 12(k) of the Securities Exchange Act created in 1934. This act gives the Securities and Exchange Commission the power to temporarily halt trading in stock for 10 days and “generally prohibit a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met.”
As cryptocurrency investors get more information on buying tokens and crypto coins, scams and firms seeking to lure investors are now falsely claiming approval from respected regulatory bodies and financial institutions around the world.
To stay on the safe side, investors are advised to do a thorough background check before they invest in cryptocurrency.
After Simex found itself on the wrong side after claiming SEC’s approval, do you think regulatory bodies are getting stricter on cryptocurrency affiliated firms falsely claiming approval to save investors?
Let us know in the comments section below.