The US SEC flagged eight unregistered crypto entities

Among 28 crypto investment firms, the SEC targetted eight firms
  • The SEC has warned five unregistered crypto service providing firms and blacklisted three such firms
  • The firms were operating under fake claims to solicit international investors
  • The entire cryptosphere is waiting for Garry Gensler to lead the regulatory body

On Thursday, the United States Securities and Exchange Commission (SEC) flagged eight crypto firms among twenty-eight suspected firms. According to the regulatory body, the eight targetted firms appeared to be duping mostly international crypto investors with fake corporate information. Some of the firms claim to be trusted newcomer trading hubs among the suspected firms, whereas some peddle their services to retirees. Among the suspects, one firm claims to be a law firm that can act against fraudulent activities in the cryptosphere.

Firms flagged and blacklisted by the US SEC

In total, eight firms offering crypto services have been flagged and blacklisted by the US SEC. In the list of the firms being targetted we found names like AxTrading-Investment, SmartCoins 24, RetireWell Investors, Reclaw International Inc., and Passive Trade Plan. It is also known that all these entities used to offer blockchain and crypto-related services on their platforms. On the other hand, three firms were found in the SEC’s blacklist. Such firms include BitminingFX, Cryptobravos, and FXBitcash. It is found that all these firms’ websites were down while investigation. However, it is known that the firm’s websites appear to mix welcoming rhetoric and sweeping claims in their efforts to attract crypto investors.

Fake claims of the flagged crypto entities

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Passive Trade Plan’s claimed that its platform is a trusted authority investigating crypto frauds. SmartCoins 24, claimed and promised to trade the hottest crypto tokens of 2018. By reading the details of AxTrading-International’s website, we found that the firm claimed to offer trading services to newbies in the cryptosphere, along with veteran traders. 

Following the firms’ claims, the US SEC mentioned that cryptocurrency investors have already filed complaints against all the soliciting firms. According to the US SEC, such firms, use misleading information to fraud international investors. However, the regulators added the firm to its warning list and blacklisted the entities to save individuals being a victim of fraud.

Wait for the next head of the regulatory body

The US SEC warned the investors against such opportunities in the cryptosphere. Prior to the recent report, the regulatory body also revealed frauds related to Initial Exchange Offerings and other cases regarding firms pumping their value with Initial Coin Offerings. Such warnings might take an edge form with Garry Gensler’s entry, the former CFTC head to lead the US SEC.

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Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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