Tuesday, trading of The Crypto Company stock came to a screeching halt, when the Securities and Exchange Commission suddenly suspended trading until January 3, over “concerns regarding the accuracy and adequacy of information” about plans for insider sales and money spent to promote the skyrocketing firm.
Since The Crypto Company (CRCW), a California-based company, first started trading on September 27, it’s shares have soared by more than 17,000%. The stock has risen nearly 160% in the past five days, and over 1,800% in the past month.
The company was worth less than $100 million when it first went public, but skyrocketing trading has lifted the company’s market value to over a whopping $11 billion.
Shares first started trading at $3.30 per share in September, and by December, it had jumped to $642 per share. When the SEC suspended trading Tuesday, it was at $575, according to CNN Money.
In a press release announcing the suspension, the SEC stated, “Questions have arisen concerning potentially manipulative transactions in the company’s stock in November 2017.”
“We are fully reporting and get halted,” Crypto Company CEO Mike Poutre told Business Insider Tuesday morning. “SEC is sending the wrong message. We are working with counsel and will handle things appropriately.”
According to CNN Money, “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.”
Brad Garlinghouse, CEO of Ripple, a company that works to license blockchain technology with banks, said, “Many of the ICOs are more frauds than real businesses. The industry needs to work with regulators and not be in the shadows. ICOs are taking advantage of grey areas in securities law. What worries me the most is some of the hype in the system.”
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