US Securities and Exchange Commission [SEC] strikes again to suspend another cryptocurrency company

On 22nd October, a company in the United States came under the scanner of the Securities and Exchanges Commission [SEC] because of false claims of approved cryptocurrency custodian policies.

American Retail Group or Simex Incorporated, a Nevada based digital assets exchange, has had their services suspended till 3rd November by the SEC after the company claimed that it had partnered with an SEC qualified custodian for cryptocurrency transactions like Bitcoin [BTC]. Robert A Cohen, the Security and Exchanges Commission’s Cyber Unit enforcement Chief stated:

“The SEC does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering.”

Another red flag that was raised by the SEC was the fact that Simex had started offering tokens which was apparently “officially registered in accordance with SEC requirements.”

This was not the first SEC crackdown of the month, with the latest suspension coming in the wake of the financial watchdog suing Blockvest, an ICO. Blockvest was reportedly conducting business under the false pretense of having SEC approval. The organization had stated:

“Blockvest and Ringgold also allegedly misrepresented Blockvest’s connections to a well-known accounting firm, and continued their fraudulent conduct even after the National Futures Association (NFA) sent them a cease-and-desist letter to stop them from using the NFA’s seal and from making false claims about their status with that organization.”

Frauds and illegal activities in the cryptocurrency industry have been under the radar of security agencies for quite some time now with several cryptocurrency companies being suspended or put to the axe. The SEC has been at the forefront of several of these cases with several more still in the pipeline.