SEC Details Reasons For ICO ‘Suspensions,’ Warns About Pump-And-Dump

The US Securities and Exchanges Commission (SEC) has issued a warning about ICOs and reasons it could “suspend” them in future.

A circular from the regulator’s Office of Investor Education and Advocacy Monday focuses on “potential scams involving stock of companies claiming to be related to, or asserting they are engaging in” ICOs.

In the bulletin, the SEC highlights three reasons it could “suspend trading” for “public interest” if an ICO provider is found to have fallen short of the law.

These are:

- "A lack of current, accurate, or adequate information about the company _ for example, when a company has not filed any periodic reports for an extended period;

- Questions about the accuracy of publicly available information, including in company press releases and reports, about the company’s current operational status and financial condition; or

- Questions about trading in the stock, including trading by insiders, potential market manipulation, and the ability to clear and settle transactions in the stock."

Full story at http://bit.ly/2wGHW6x

Source: CoinTelegraph

 

 

 

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