The Securities and Exchange Commission moved to suspend trading of First Bitcoin Capital shares on Thursday, citing concerns about the Canadian company's transparency and structure. In its statement announcing the suspension, the SEC described it as temporary, and set a preliminary termination date of September 7, 2017. In detailing the regulator's action, the statement notes:
"The Commission temporarily suspended trading in the securities of BITCF because of concerns regarding the accuracy and adequacy of publicly available information about the company including, among other things, the value of BITCF’s assets and its capital structure. This order was entered pursuant to Section 12(k) of the Exchange Act."
Th SEC also used that suspension statement to caution brokers, shareholders, and others about doing their due diligence before entering into any quotation arrangement with the suspended company. The move comes as First Bitcoin's stock was trading at $1.79 a share after ending 2016 at a mere 3 cents.
According to a report in the New York Post, First Bitcoin CEO Simon Rubin claims that the SEC action is the result of a misunderstanding, and suggests that the agency simply needs more information to allay its concerns.