The Securities and Exchange Commission halts trading in the securities of American Retail Group, also known as Simex, in connection with the company’s false statements.
This case is connected with two company’s press releases in August, in which ARG stated that it collaborated with a SEC custodian for use with transactions with cryptocurrencies that will be "under SEC Regulations." Also, ARG stated that it conducted a token offering that was "officially registered in accordance with SEC requirements."
Robert Cohen, Chief of the SEC Enforcement Division's Cyber Unit, said:
"The SEC does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering."
According to the laws, the SEC can stop trading stocks within 10 days. This can usually prohibit a broker-dealer from requesting investors to buy or sell stocks.
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