SEC Suspends American Retail Group (ARGB) Stock Trading After Saying it Was Falsely Endorsed
American Retail Group ($ARGB) has been suspended from trading on Saturday. The decision has been taken by the U.S. Securities and Exchange Commission (SEC). Apparently, the Nevada-based company lied to investors saying that the token offering that they conducted was ‘in accordance [with] SEC requirements.’
The SEC has been taking very hard stances during the last months with companies that are not operating legally. In this case, $ARGB lied to investors regarding possible support from the SEC. Indeed, the firm claimed to have partnered with an SEC-registered custodian that would allow handling crypto transactions.
Some time ago, the regulatory agency announced two enforcement actions against two Initial Coin Offerings (ICO) called Paragon and Airfox. Both of them have to pay a $250,000 fine and return the money gathered to investors. Apparently, these ICOs have been accused of selling unregistered securities.
The SEC has also been taking other measures in order to protect investors from being scammed by fraudulent companies. The regulatory agency created a fake ICO website asking investors for their funds. After all, the SEC informed that the intention was to warn investors about ICOs in the crypto market.
The Chief of the SEC Enforcement Division’s Cyber Unit, Robert Cohen, explained that the agency does not support custodians for virtual currencies.
On the matter, he commented:
“The SEC does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering.”
At the moment, the suspension could last up to 10 days. However, the company might not be able to keep receiving funds from investors. The SEC could also request a specific reporting on some requirements before the prohibition is lifted.