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SEC Suspends Trading In Three Companies Claiming Crypto Assets

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The Securities and Exchange Commission temporarily suspended trading in three companies after they made similar statements related to questionable acquisition of cryptocurrency and blockchain technology-related assets.

The affected companies are Cherubim Interests, Inc. (CHIT), PDX Partners, Inc. (PDXP), and Victura Construction Group, Inc. (VICT).

The Bitcoin Magazine reported that all three of them are being headed by the same chief executive officer, Patrick Johnson.

The SEC had warned investors in August to be on alert for companies that may publicly announce ICO or coin/token related events to affect the price of the company's common stock.

The three penny stock companies, Cherubim, PDX Partners and Victura Construction have separately announced in mid-January the acquisition of a total of $700 million in AAA rated assets to bolster balance sheet.

Each of the companies acquired several thousand trust units in a private equity NVC Fund with reported investments related to blockchain and cryptocurrency. The NVC Fund is said to have investments in blockchain technology and fintech cryptocurrency, among others.

"This is a reminder that investors should give heightened scrutiny to penny stock companies that have switched their focus to the latest business trend, such as cryptocurrency, blockchain technology, or initial coin offerings," said Michele Wein Layne, Director of the Los Angeles Regional Office.

The SEC noted that it can suspend trading in a stock for 10 days under the federal securities laws and generally prohibit a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met.

According to the company's websites, Cherubim calls itself an alternative construction and real estate development company, PDX describes itself a telecom company, and Victura states calls itself a holding company for the construction industry. Each of these have a market capitalization of less than $5 million.

Meanwhile, Cherubim also announced in early January that it has also executed a financing commitment of $100 million to launch an Initial Coin Offering for "The Self Sustaining Intentional Communities Coin" with the symbol SJT.

by RTTNews Staff Writer

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