The United States Security and Exchanges Commission (SEC) said on Monday that it is temporarily suspending trading of securities belonging to not-so-popular crypto startup, Bitcoin Generation Ltd (BTGN).
According to the regulators, the temporary suspension in trading of the Bartlesville, Oklahoma-based company’s securities will last for eleven days, starting from April 29 and ending on May 10.
There are four reasons identified by the SEC as the reason for the halt namely:
Uncertainty regarding a bond which the company claims it acquired from a U.K based entity.
Lack of knowledge regarding the value of BTGN’s outstanding common stock.
Uncertainty regarding the scope of stock promotional activity carried out by BTGN and its impact on the stock’s value.
Concerns about the accuracy and adequacy of current public information regarding BTGN’s financial condition.
The U.S SEC has warned members of the public including brokers and investors to tread cautiously in light of the temporary ban on trading until the firm issues feedback which leads them to meet regulatory compliance.
Meanwhile, SEC’s suspension of Bitcoin Generation’s stocks is arguably the first time that the little-known project has made headlines in the cryptocurrency industry. Data from its website supports that the startup is the first publicly traded cryptocurrency exchange and also that it offers both cryptocurrency trading and mining services with 10,000 machines in operation.
However, the website is poorly ranked on the internet with an Alexa position of over 19 million and an interface that resembles a project yet to get off the mark.
In another news regarding a crypto startup, Stmarket.co reported earlier today that Bitcoin Futures startup, Bakkt has made three significant moves towards the launch of its long-awaited platform.