SEC Suspends Trading in Cryptocurrency-Fueled Trio of Companies

The US securities watchdog has put the kibosh on trading in three listed companies with ties to cryptocurrencies and blockchain. On Feb. 16, the US Securities and Exchange Commission (SEC) announced it had suspended trading in these entities — all three of which have the same CEO at the helm, Patrick Johnson — based on announcements revealing the way they did business and valued cryptocurrency and blockchain assets. Cherubim Interests (CHIT), telecom company PDX Partners (PDXP) and holding company Victura Construction Group (VICT) each had announced the acquisition of AAA-rated assets with convertible preferred stock from NVC Fund, a division of a cryptocurrency and blockchain-driven private equity investor. Meanwhile, CHIT, a construction and real estate development company, also revealed its plans for an upcoming ICO in which it planned to issue the SJT coin “for financial and societal gain,” all of which made its way onto the radar of the SEC. The companies are considered penny stocks and trade in the OTC market. The SEC used the opportunity to repeat its warning to investors about listed companies jumping on the coattails of cryptocurrencies and blockchain to drive their shares higher.

Reference: https://www.ccn.com/sec-suspends-trading-cryptocurrency-fueled-trio/

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