The SEC suspends trading of $ARGB for falsely claiming an SEC endorsement

The Securities and Exchange Commission (SEC) suspended trading in the stock of Nevada-based American Retail Group (OTC: $ARGB) on Oct. 22, 2018, after it claimed to be conducting a token offering that was officially ”in accordance [with] SEC requirements.” It also claimed to have partnered with an SEC-registered custodian for crypto transactions.

The SEC has been cracking down on false claims and aiming to educate investors on the subject, including making a mock ICO website. According to the SEC, "Earlier this month, the SEC issued an investor alert that warned investors to be vigilant for false claims about SEC endorsements used to promote digital asset investments."

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.”

Legally, this suspension can last up to 10 days, and a prohibition on soliciting new investors can last until specific reporting requirements are met.

About Author

Isabel is The Block's London and European reporter. She previously reported for Reuters in Madrid and London, following on from her time as a freelance journalist for the Guardian and the New York Times. She has a Bachelors in War Studies from King’s College London and a Master of Philosophy from the University of Oxford. Conflict of Interest: Edward Woodford, the CEO of SeedCX, is Isabel's brother. She does not report on any issues related to Seed or advise other authors in any regard.