The U.S. Securities and Exchange Commission said Friday that it has temporarily suspended the trading of three companies as it looks into statements they made regarding the purchase of cryptocurrency and blockchain-related assets.
The regulator announced that the trade of securities for the companies – Cherubim Investments, Inc., PDX Partners, Inc., and Victura Construction Group, Inc. – will be suspended between 9:30 a.m. EST Friday and March 2. The suspension notice was dated Feb. 15.
The agency explained:
A release published by the agency cites additional reasons for the suspensions. In the case of Cherubim, the trading halt came as a result of "its delinquency in filing annual and quarterly reports."
In August, the agency issued a warning to investors about the risk of pump-and-dump schemes that use statements about initial coin offerings (ICOs) in order to drive market action.
"Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams," the SEC said at the time.
SEC emblem image via Shutterstock
This article has been updated for clarity.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.