- The US SEC has added eight crypto companies to its PAUSE list.
- The companies were allegedly soliciting funds from investors with inaccurate information.
A recent announcement from the U.S. Securities and Exchange Commission (SEC) informs that the regulator has updated its warning list “Public Alert: Unregistered Soliciting Entities (PAUSE)” with 28 suspicious companies, eight of which are dealing with digital currencies. The unregistered crypto companies were reportedly operating with false corporate information to solicit funds from investors and people new to cryptocurrency – mostly non-US residents.
SEC adds eight crypto companies to PAUSE
According to SEC, the unregistered companies that made the PAUSE list have been the subject of investor complaints. The regulator also found that these companies were operating with inaccurate information regarding their registration, locations, and other corporate information. Companies that intend to solicit funds from investors are obliged to meet certain requirements that include registering the regulator.
The eight crypto companies added to the list are not recognized by the SEC. Currently, the listed website for three of the companies – FXBitcash, Cryptobravos, and BitminingFX – are down. The other five crypto companies include- Passive Trade Plan, Reclaws International Inc., RetireWell Investors, AxTrading-Investment, and SmartCoins24. They are promoting crypto and blockchain services, targeted at new investors who are mostly based outside the United States.
SEC: An active regulator of U.S. crypto space
The development today is meant to better inform investors about unregistered companies posing with false corporate information. This is expected to help them avoid being victims of crypto scams. However, the “inclusion on the PAUSE list does not mean the SEC has found violations of U.S. federal securities laws or made a judgment about the merits of any securities being offered.”
The United States SEC is one regulator that is actively watching the U.S. crypto space against misconduct and suspicious activities. Last year, the regulator charged a pastor who was allegedly running a bottle water crypto scam. In the same year, the regulator charged a Pennsylvania crypto company for mismanagement of funds.