Another company is being punished by the Securities and Exchange Commission for making false claims of regulatory approval related to cryptocurrency trading.

Trading by Nevada-based American Retail Group, which also goes under the name of Simex, has been shut down for at least the next 10 days, the U.S. securities regulator said in a press release.

According to the SEC’s trading suspension order, two August press releases issued by American Retail Group claimed it had partnered with an “SEC-qualified custodian” for use with cryptocurrency transactions that would be “under SEC Regulations,” and that the company was conducting a token offering that was “officially registered in accordance [with] SEC requirements.”

“The SEC does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering,” Robert A. Cohen, chief of the SEC Enforcement Division’s Cyber Unit, said in the release.

The agency released an advisory earlier this month restating the need for investors to be careful when it comes to cryptocurrencies.

ThirtyK Staff
If you would like to contact the ThirtyK News Brief team, please email us at contact@thirtyk.com.