SEC suspends trading of red-hot bitcoin stock multinational debit card owned by mastercard

The securities and exchange commission suspended trading tuesday of the crypto company until january 3, citing “concerns regarding the accuracy and adequacy of information” about compensation paid to promote the firm and plans for insider sales.

The crytpo company describes itself as a business that “offers a portfolio of digital assets, technologies, and consulting services to the blockchain and cryptocurrency markets” with plans for a “rollout of a full scale, high frequency cryptocurrency trading floor.”

Shares of the crypto company ( CRCW) have surged nearly 160% in the past five days, more than 1,800% in the past month and 17,000% in the past three months, as investors and traders have bid up the price of bitcoin ( XBT) higher and higher.Multinational debit card owned by mastercard

That stunning rise has lifted the company’s market value to more than $11 billion. To put that in perspective, that’s higher than the market value of well-known brand name companies like macy’s ( M), the new york times ( NYT) and under armour ( UAA).

The SEC move comes shortly after the crypto company announced plans to split its stock 10-1 to try and push the price lower and make it more affordable for average investors.

Shares had surged to a price of $575 before the SEC suspended trading. A 10-1 split would have increased the number of total shares by a factor of ten and lowered the price to $57.50. So the value of the company would not have changed.

The crypto company CEO mike poutre said in a release about the split that the company wanted to “see orderly market activity” for the stock and added that the split was “the responsible thing to do.”

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He noted that many blue chip companies, including mastercard ( MA) and apple ( AAPL), have done stock splits to keep their prices more accessible to mom and pop investors.

Poutre also referred to “the euphoria” surrounding bitcoin, and added that “we want people to pay attention to the business we are building, not the hype of a stock or the cryptocurrency world.”

The crypto company was not immediately available for comment about the SEC action.

But the SEC has taken steps lately to crack down on potential frauds and scams surrounding bitcoin and other digital currencies, particularly with initial coin offerings or icos. With an ICO, a company sells a digital currency or token to investors instead of stock.

Several cryptocurrency executives are nervous about the industry getting a bad reputation too.Multinational debit card owned by mastercard

Brad garlinghouse, CEO of ripple, a company that developed the ripple XRP cryptocurrency and also works to license blockchain technology with banks, says he wants to cooperate with agencies like the SEC to weed out bad actors.

“many of the icos are more frauds than real businesses. The industry needs to work with regulators and not be in the shadows,” he said. “icos are taking advantage of grey areas in securities law. What worries me the most is some of the hype in the system.”

Jalak jobanputra, partner with venture capital firm future\perfect ventures and an investor in cryptocurrency tech firms, agrees. She said that there is “a lot of speculation” in the crypto area and that she “welcomes scrutiny from the SEC.” […]

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