SEC Suspends ARSC Trades, Issues ICO Warning

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The U.S. Securities and Exchange Commission has issued yet another trading suspension for a Bitcoin exchange – this time targeting American Security Resources Corp (ARSC). That suspension was issued last week, on the same day the SEC also suspended trading for First Bitcoin Capital Corp due to the agency’s questions about that company’s lack of transparency. The agency’s suspension notice detailed its concerns about ASRC:

“The Commission temporarily suspended trading in the securities of ARSC because of questions that have arisen regarding publicly available information about the company in press releases on OTCMarkets.com, dated August 1, and August 8, 2017, concerning, among other things, the company’s business transition to the cryptocurrency markets and early adoption of blockchain technology. This order was entered pursuant to Section 12(k) of the Exchange Act.”

The suspension is temporary, and remains in effect until September 8, 2017. The SEC’s concerns appear to be related to questions that arose after ARSC announced in early August that is was rebranding itself as the Crypto Currency Exchange Corporation and launching its own digital currency exchange.

The SEC’s focus on digital currencies seems to have intensified recently, with several suspensions in August and yesterday’s issuance of a warning concerning Initial Coin Offerings. That warning came from the Commission’s Office of Investor Education and Advocacy, and urged investors to beware of “potential scams involving stock of companies claiming to be related to, or asserting they are engaging in, Initial Coin Offerings (or ICOs).”

The views expressed by the authors on this site do not necessarily represent the views of DCEBrief or the management team.

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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