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 SEC's said there are questions regarding the nature of the business operations and the value of the three companies' assets, including in press releases issued beginning in early January 2018. The SEC has been warning investors to be on alert for companies that may publicly announce ICO or coin/token related events for the sole objective of moving the price of the company's common stock.
The suspension notice was dated February 15th. (OTCPing:VICT). The halt was related to recent press releases that claimed these companies had acquired assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology.
The Securities and Exchange Commission (SEC) is once again taking action against companies that make specious claims regarding cryptocurrency and Blockchain involvement. "According to the SEC order regarding CHIT, it also announced the execution of a financing commitment to launch an initial coin offering". The SEC can suspend trading for 10 days and ban brokers from activity in a stock until its reporting requirements are met. "We haven't made any false claims about anything that we have put out".
This is a reminder that investors should give heightened scrutiny to penny stock companies that have switched their focus to the latest business trend, such as cryptocurrency, blockchain technology, or initial coin offerings.
SEC Chairman Jay Clayton, in a speech last month, warned companies about changing their names just to cash in on the cryptocurrency craze.
"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.