The US securities watchdog has halted trading in the stocks of a cryptocurrency-related company, Vortex Blockchain Technologies, because of confusion over the nature of its business operations and the value of their assets.
Vortex Blockchain Technologies Inc, formerly UA Granite Corporation, is currently a shell company that had been developing a variety of applications in the cryptocurrency space. Its activities covered both the software and hardware spheres, including cloud mining, blockchain hardware and software development, and a cryptocurrency wallet and exchange.
The Securities and Exchange Commission has suspended trading in Vortex amid questions surrounding its business due to a lack of current and accurate information about the company, which has not filed certain periodic reports with the SEC.
However, the suspension is temporary, beginning on September 23 and ending on October 6, 2020.
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This is not the first time a blockchain-related company got in trouble due to a foray into the cryptocurrency-inspired technology.
Many Crypto Firms Slapped with SEC’s Suspension Notices
Last year, the US securities watchdog also suspended another company tied distantly to the cryptocurrency industry after temporarily halting trading in shares of CIAO Group, citing concerns over the Nevada technology company’s planned initial coin offering (ICO).
Additionally in 2018, the regulator insisted on the name changes for the first Blockchain ETFs as investors seem desperate for any kind of blockchain exposure, to the point where many startups that put the word blockchain, or other cryptocurrency terms, into their name have seen their share prices soar.
The US regulators have taken enforcement actions, too, with a dozen companies having to put their offerings on hold after the SEC issued warnings. Further, the agency froze assets of several cryptocurrency firms, halted ICOs and suspended trading in companies that claimed cryptocurrency or blockchain dealings.
However, putting cryptocurrency companies and their advisers on notice failed to chill the booming market.