Trading of Three Crypto-Linked Firms Suspended by Wary SEC
- Companies sidelined because of suspicions over motivations
- Regulator questioned their business models, value of assets
The U.S. Securities and Exchange Commission has halted trading in three companies that claimed acquisitions of assets tied to cryptocurrency and blockchain technologies, saying the agency had questions about their business operations and the value of their assets.
Cherubim Interests Inc., PDX Partners Inc. and Victura Construction Group Inc. issued similar press releases saying they acquired the assets from a subsidiary of a private-equity investor, the SEC said in a statement Friday. Cherubim additionally announced plans to launch an initial coin offering, the SEC said. In announcing the trading suspensions, the agency repeated a warning to investors about companies that may be seeking short-term stock boosts by touting involvement with blockchain technology.