by: Andrew Elbaz and Student-at Law, Joseph Jamil
On December 18, 2017, the U.S. Securities Exchange Commission (the “SEC”) temporarily suspended trading in the securities of The Crypto Company (the “Crypto Co.”) until January 3, 2018. The SEC imposed the halt as a result of concerns about the accuracy and adequacy of Crypto Co.’s disclosure, including, but not limited to, compensation paid to various promoters, insiders’ plans to sell their shares, and potentially manipulative transactions in the Company’s stock in November 2017.
The Crypto Co. was incorporated in the State of Nevada on March 9, 2017, and went public via a reverse merger in June 2017. The company engages in the business of advising, investing, trading, and developing proprietary source code for digital assets with diversified exposure to cryptocurrency markets.
As of the announcement of the suspension of trading of Crypto Co. (OTCMKTS: CRCW), the share price was $575, representing a more than 17,000% increase in less than three months since it started trading in September 2017. The jump in Crypto Co.’s share price gives the company a market value of more than $11 billion.
In addition to the trading halt, Bernstein Liebhard LLP, a New York law firm specializing in securities class action lawsuits, is investigating whether Crypto Co. and its directors breached their fiduciary duties and/or violated SEC securities laws by making false and/or misleading statements or omissions regarding the company’s business. We will continue to provide further updates as the suspension is lifted on January 3, 2018, as disclosed by the SEC or Crypto Co.