ASIC Halts IPO of Bitcoin Group for Undisclosed Reasons

The Australian Securities and Investments Commission (ASIC) has issued an interim stop order on the planned initial public offering (IPO) of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term Group.

According to its website, Bitcoin Group operates a mining pool where investors can earn bitcoins. It also operates Bitcoins Reserve, which claims to offer “cryptocurrency arbitrage,” merchant services, insured Cold Storage Cold Storage Cold storage is a computer system or mode of operation that is designed for the retention of inactive data, in this case private keys for cryptocurrencies. This helps put up resilient barriers against theft by hackers and malware, and is often a necessary security protocol especially dealing with large amounts of Bitcoin.In order to “own” a cryptocurrency, one must be in control of a cryptocurrency’s private keys. As such, private keys are long strings of random characters that can be used to se Cold storage is a computer system or mode of operation that is designed for the retention of inactive data, in this case private keys for cryptocurrencies. This helps put up resilient barriers against theft by hackers and malware, and is often a necessary security protocol especially dealing with large amounts of Bitcoin.In order to “own” a cryptocurrency, one must be in control of a cryptocurrency’s private keys. As such, private keys are long strings of random characters that can be used to se Read this Term, and “cryptocurrency creation.” The cryptocurrency arbitrage service was claimed to have generated a return of over 205.8%.

Both businesses are based out of: Level 11, 470 Collins Street, 3000, Victoria, Australia. They appear to have different management teams, although the current CEO of Bitcoin Group, Sam Lee, was previously reported as CEO of Bitcoins Reserve.

Last October, Bitcoin Group announced it was seeking to raise $20 million (AUD) through an IPO, which was originally scheduled for last November.

ASIC did not disclose the reason for the stop order, which can be issued to prevent offers being made under a disclosure document if it contains "a misleading or deceptive statement, an omission of information required to be provided under the legislation, or a new circumstance has arisen since the disclosure document was lodged."

According to a July 8 press release, the exposure period for the company's prospectus was extended by 7 days. The stop order was issued shortly thereafter.

In February, ASIC warned Bitcoin Group against further public statements over its intended IPO after it attempted to woo investors on WeChat, a Chinese social media platform.

The stop order can remain in effect for up to 21 days, after which a hearing is held to consider the company's position. Thereafter, either the interim stop order is lifted or a final stop order is issued.