The Securities and Exchange Commission suspended trading in American Retail Group Inc. on Monday for questions arising from its claims about SEC-endorsed cryptocurrency transactions.
The Nevada-based company, also known as Simex Inc., said it had partnered with an SEC-qualified custodian and that these digital currency transactions would be done under SEC regulations, according to the agency. The company also claimed that it was conducting an SEC-registered token offering.
The SEC can suspend trading in a stock for 10 days under securities law and generally prohibit a broker-dealer from soliciting investors to buy or sell the stock if it is not in compliance.
The agency has been on the alert for such claims of SEC endorsements and wants investors to be, as well.
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The SEC issued an investor alert on Oct. 11 to warn investors to be on the lookout for false claims about agency endorsements related to digital assets.