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It is being reported today by Bitcoinist that the Securities and Exchange Commission has officially called for a suspension to trading activities on the Bitcoin Generation exchange, citing concerns over the "accuracy and adequacy of information" that has been provided by the company. Bitcoin Generation is the first crypto exchange to have a publically traded stock.
The SEC released an announcement today declaring the temporary ban on trading activities at the exchange. The primary issues that the SEC has with the company are summed up as thus:
"The Commission temporarily suspended trading in the securities of BTGN due to concerns about the accuracy and adequacy of information in the marketplace about, among other things, (1) BTGN’s public statements regarding the viability and valuation of a bond that BTGN purportedly acquired from an entity based in the United Kingdom; (2) the amount of BTGN’s outstanding common stock; (3) stock promotional activity relating to BTGN and the market impact of such promotional activity; and (4) the accuracy and adequacy of current public information regarding BTGN’s financial condition."
The suspension is only being put in place through May 10th, and it is presumable that by then the SEC will have more information and will make a more formal ruling about the exchange moving forward.
This is an unforunate turn of events, and makes one more story about regulators cracking down on alleged wrongdoings at a crypto exchange. Will it become something bigger, or is this all just the SEC overreacting? Stick with Chepicap for all updates!