The U.S. Securities and Exchanges Commission (SEC) on Monday, said it is for a limited time, stopping the trading of shares in a self-described and unpopular cryptocurrency exchange and mining firm dubbed Bitcoin Generation (BTGN).
The SEC issued the stop order as a result of unclarified concerns regarding most of the information publicised by the firm. The SEC claims that the published information may not be correct, while the financial status of the company is unknown at the moment.
Specifically, the SEC says it’s attention was called towards Bitcoin Generation because of the following matters.
- A bond which the exchange BTGN supposedly bought from a UK-based entity
- The amount of outstanding BTGN stock
- Promotional activities associated with BTGN and its impact on the stock’s performance
- The adequacy and accuracy of publicised information relating to the exchange’s financial state.
To ensure safety, the SEC cautioned shareholders, prospective purchasers, and broker-dealers, to carefully analyse any previous information from the regulators, alongside every other existing data and information subsequently provided by the exchange.
The temporary suspension will last for 11 days with trading activities expected to resume by 11:59 P.M, Eastern Daylight Time on 10th May (03:59 UTC, May 11) 2019. However, the SEC notes that resumption would be dependent on the company meeting compliance before then.
Little About Bitcoin Generation
According to information on its website, BTGN is a Bartlesville-based firm, which publishes itself as the first publicly traded cryptocurrency exchange.
The firm claims to offer dollar trading pairs with cryptocurrencies such as Bitcoin, Litecoin, Ethereum, Monero, Bitcoin Cash SV, and XRP (not custodied). Additionally, their site noted that BTGN operates a mining facility with over 10,000 machines.
Enquiries to Bitcoin Generation regarding their status with the SEC and their exchange is yet to receive a response. We’ll update this post as soon as there is feedback from the startup.
In a similar development in December, Coinfomania reported a 90-days ban for Bitsurge Token and Green Energy Certificate. That ban was issued by the Italian version of the U.S SEC, customarily referred to as Commissione Nazionale per le Società e la Borsa (CONSOB).