Yesterday the U.S. Securities and Exchange Commission (SEC) published a notice, stating that it was freezing stock trading for The Crypto Company, which is based in Malibu, California, and offers consulting and investment services around cryptocurrencies.
According to the notice, the SEC said that it was moving to pause trading because of concerns over some of the information published by the company, as well as plans (outlined in public filings) regarding the sale of shares by "insiders." The trading freeze will last until January 3.
The Commission temporarily suspended trading in the securities of The Crypto Company because of concerns regarding the accuracy and adequacy of information in the marketplace about, among other things, the compensation paid for promotion of the company, and statements in Commission filings about the plans of the company's insiders to sell their shares of The Crypto Company's common stock. Questions have also arisen concerning potentially manipulative transactions in the company's stock in November 2017.
The U.S. Securities and Exchange Commission
The Crypto Company has seen its stock soar in the past weeks. The price is up more than 1,800% in the past month, with a market capitalization in excess of $11 billion.
Recently, the Crypto Company disclosed a private stock sale to accredited investors at $7 per share, a 97% discount to closing price of $223.