The U.S. Securities and Exchange Commission (SEC) has suspended trading of The Crypto Company’s (OTCMKTS:CRCW) stock.
The reason for the suspension has to do with the major growth that the stock has seen recently. This includes a 2,700% increase over the last month. This has raised fears that the stock is being manipulated, which is the reason for the suspension.
The Crypto Company’s stock was last trading at $575 per share and it has a total market value of $11 billion. The company was incorporated in March and deals in trading and investing in digital assets.
The suspension that The Crypto Company is facing for its stock is only set to last until Jan. 3 at midnight. The SEC has been taking more notice of companies with connections to bitcoin and other virtual currencies of late, reports CNBC.
The SEC’s recent attention on bitcoin and other cryptocurrencies includes some warnings about the dangers of the assets. It put out a warning back in August about investing in Initial Coin Offerings (ICO) that could potential be scams. It also created a list earlier this month for the risks that investors of bitcoin face.
While the SEC is working to catch up on bitcoin, some groups are becoming more accepting of the virtual currency. This includes the Chicago Mercantile Exchange (CME), which started trading bitcoin futures on Dec. 18. This is possible because the CME completed the U.S. Commodity Futures Trading Commission’s self-certification process. Another firm is also now trading bitcoin futures.
As of this writing, William White did not hold a position in any of the aforementioned securities.