SEC Branch Trolls Blockchain Stock Pumpers

The Securities and Exchange Commission's Fort Worth branch joked about the recent fad of companies adding "blockchain" to their names on Twitter.

AccessTimeIconJan 8, 2018 at 9:45 p.m. UTC
Updated Sep 13, 2021 at 7:21 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The social media team at the U.S. Securities and Exchange Commission's Fort Worth office has taken aim at the recent trend of publicly traded companies looking for a blockchain price boost.

As previously reported, the past months have seen a range of companies, including a virtual reality platform and a Long Island iced tea distributor, "pivot" to blockchain – and subsequently benefit from the market windfall thanks to investors.

Those dizzying price gains have elicited criticism, a public stock freeze or two and, now, a crack from the Forth Worth SEC, which posted earlier today:

— SEC Fort Worth (@FortWorth_SEC) January 8, 2018

which pivoted to crypto or blockchain focuses include Riot Blockchain, formerly BiOptix Diagnostics, and LongFin, which saw a 2,600 percent stock jump after purchasing a blockchain micro-lending company.

While these companies have announced efforts to work with blockchain or, at the very least, mine cryptocurrencies (as seen in a number of past filings, organizations like the Financial Industry Regulatory Authority (FINRA) have sounded the alarm on such announcements.

Specifically, the group warned investors to be wary about any publicly traded stocks that boast having a connection to the tech. It stated in a release last month that "it's easy for companies or their promoters to make glorified claims about new products, services and other cryptocurrency-related connections," noting that the tactic could be deployed by would-be fraudsters.

Steer image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about