SEC Suspends Trading In 3 Companies Due To ‘Questions’ Around Cryptocurrency Ties

February 20, 2018

The Securities and Exchange Commission (SEC) published a report Thursday, Feb. 15 explaining the temporary suspension of trading in three companies that had made statements about acquiring cryptocurrency and

Blockchain technology-related assets


All three companies, Cherubim Interests (CHIT), PDX Partners (PDXP), and Victura Construction Group (VICT) have been suspended starting Feb. 16 for two weeks for investor protection purposes. The SEC trading suspension orders state that all three companies issued press releases that claim that:

[T]he companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things. According to the SEC order regarding CHIT, it also announced the execution of a financing commitment to launch an initial coin offering [ICO],

The SEC orders also state

there are questions regarding the nature of the companies’ business operations and the value of their assets


In late August, 2017, the SEC issued a warning to investors regarding ICOs and the potential for scams, including reasons it might suspend trading of a company

to protect investors and the public interest

. On Jan. 22, 2018 SEC Chairman Jay Clayton warned that companies that shift their business models

on the promise

of Blockchain technology will face closer scrutiny from regulators.

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