Following last night’s chaotic appearance of LongFin CEO on CNBC’s FastMoney, it appears The SEC has finally had enough of the unusually explosive price gains of previously tranquil publicly-traded companies adding the word ‘blockchain’ to their names (or mission statements). In what we suspect will be the first of many, The SEC has suspended trading of shares in “The Crypto Company” – a name we’re familiar with – due to “potentially manipulative transactions in the company’s stock.”
The Securities and Exchange Commission cites concerns regarding the accuracy and adequacy of information about compensation paid for promotion of the company, and statements in Commission filings about the plans of the company’s insiders to sell their shares of The Crypto Company’s common stock.
As Bloomberg reports, through Monday, Crypto’s market value had surged to more $11.9 billion. The company invests in digital assets, and is developing source code for managing them, according to its regulatory filings.
James Gilbert, the company’s president, held a stake valued at nearly $4.2 billion based on Monday’s closing price.
The SEC said its concerns include the compensation paid for promotion of Crypto and statements made in regulatory filings about plans for insiders to sell their shares.
Bitcoin trading algos were a little shocked by the misleading headline from Bloomberg: SEC: TEMPORARY SUSPENSION OF TRADING OF CRYPTO SECURITIES
But we clarified…