SEC slams company over ‘crypto lie’

SEC cryptocurrency

A public company has been sanctioned for falsely claiming it had been endorsed by the United States’ Securities and Exchange Commission.

The SEC announced today it will suspend trading in securities of American Retail Group, also known as Simex, over the claims it made in two press releases in August 2018.

“(The company) claimed that the company 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 said in a statement.

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