Using 85 Year Old Law, SEC Halts Trading on Bitcoin Exchange for 12 Days

Using 85 Year Old Law, SEC Halts Trading on Bitcoin Exchange for 12 Days

TL;DR: The US Securities and Exchange Commission (SEC) announced “temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934, of trading in the securities of Bitcoin Generation, Inc. [(BTGN)], of Bartlesville, Oklahoma, commencing at 9:30 a.m. EDT on April 29, 2019, and terminating at 11:59 p.m. EDT on May 10, 2019.”    

More Spice: Bitcoin White Paper Visualized 

Trading on Bitcoin Generation Exchange Suspended

Citing “concerns about the accuracy and adequacy of information in the marketplace about, among other things, (1) BTGN’s public statements regarding the viability and valuation of a bond that BTGN purportedly acquired from an entity based in the United Kingdom; (2) the amount of BTGN’s outstanding common stock; (3) stock promotional activity relating to BTGN and the market impact of such promotional activity; and (4) the accuracy and adequacy of current public information regarding BTGN’s financial condition,” the SEC is indeed halting activities concerning crypto exchange, Bitcoin Generation as a result.

The first concern might be a bond referenced in this press release from over a year ago. President and CEO of BTGN Deniz Hadjiev crowed at the time, “The objective is to further the use for our utility coins and provide a sustainable shareholder value derived from its value, as well as its use,” referring to a more than $20 million bond by way of the London Stock Exchange. “This a small step in improving the financial situation of the company as we continue to build our mining operations,” Hadjiev was quoted in the press release.

Using 85 Year Old Law, SEC Halts Trading on Bitcoin Exchange for 12 Days

The company touts itself as the “first publicly traded cryptocurrency exchange,” allowing users to effortlessly “connect to the global digital economy with our user-friendly interface.” It was one of the only exchanges to not offer top ten crypto bitcoin cash (BCH), however, while listing bitcoin core (BTC), ethereum (ETH, litecoin (LTC), bitcoin sv (BSV), ripple (XRP), and monero (XMR).

The SEC went on to caution “broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company,” noting further how “no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule.”

DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH. 

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