SEC Expands List of Dubious Cryptocurrency Companies

This is a list called “Public Alert: Unregistered Soliciting Entities” (PAUSE). It pursues informational purposes and does not assume that the firms that have fallen into it have violated the law.

PAUSE includes organizations whose activities, in the opinion of the regulator, are questionable. Another criterion is a name similar to well-known companies.

As examples, the SEC named the SuperBinance and Superfxtrading projects – investors can confuse them with the Binance and FTX bitcoin exchanges. The list includes Gemini M&A, and newcomers include Bittrade Capitals, 247Crypto Trade, and Bitpayfxpro.

The Commission noted that the companies included in PAUSE provided false information “about ownership, location and registration.” However, the SEC does not recognize that such firms are hiding behind well-known names, calling them “unlicensed organizations” that process transactions.

Read Also: Crypto Capital defendant pleads guilty to fraud

In November 2020, the Texas Financial Regulator issued three emergency orders on the termination of the activities of 14 cryptocurrency companies suspected of fraud.

In March 2021, state authorities made claims three unregistered projects. One of them worked under the brand of the Binance bitcoin exchange.

Recall that in October of the same year, the New Jersey Securities Bureau sent to the management of five crypto companies a suspension order due to suspected fraud.