United States SEC temporarily suspends IBITX for cryptocurrency involvement

securities exchange commission sec

The United States Securities and Exchange Commission (SEC) has suspended IBITX Software Inc from trading its securities. In a release dated 20th April 2018, the financial watchdog announced that it has placed a temporary ban on the software company following its involvement in cryptocurrency related activities.

The US SEC said the temporary suspension was due to claims the company about developing its own cryptocurrency and operating a cryptocurrency platform citing a breach of Section 12 of its Act.

The document read:

The Commission temporarily suspended trading in the securities of IBXS because of questions regarding the accuracy of assertions by IBXS, a New York corporation whose principal place of business is listed as the Philippines, in press releases to investors and disclosure statements concerning, among other things, the company’s development of alternative forms of currency, and the company’s operation of a cryptocurrency platform.

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The suspension which took effect yesterday (April 23, 2018)  goes to show the commission’s intolerance of cryptocurrency related activities by companies listed on US exchanges. It will be in effect till 11:59 p.m. EDT on May 4, 2018, according to the directive.

The regulators had earlier this week obtained a court order to freeze about $27 million of stock proceeds of Longfin Corp., another public company who had involvement cryptocurrency to the displeasure of SEC. Longfin acquired a cryptocurrency startup which saw it stocks value skyrocket, recording over 2000% increase. Although the order to freeze the proceeds was vacated yesterday on SEC’s request, Longfin still has its case to answer in court. SEC had accused the company’s CEO, Venkata Meenavalli, and three other individuals of selling reserved shares.

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Three companies Cherubim Interests, PDX partners, and Victura Construction group all owned by Patrick Johnson were similarly suspended by SEC in February. One of the companies, Cherubim Interests was on the verge of an ICO while they all had valuations in cryptocurrency. At the time, the director of SEC Los Angeles, Michele Wein Layne warned investors about shaddy ICO and cryptocurrency investments.

 

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