Bitcoin Generation Claps Back at SEC Over ‘Reckless’ Trading Suspension
Crypto exchange Bitcoin Generation is crying foul after the SEC suspended trading in the company's OTC shares without warning. | Source: (i) Shutterstock (ii) Shutterstock; Edited by CCN.com
By CCN.com: Following the suspension of trading in Bitcoin Generation (BTGN), a regulated exchange based in Oklahoma whose stock trades in the OTC market, the company has responded.
SEC “Highly Prejudicial,” Says Bitcoin Generation
The company says the U.S. SEC did not even inquire with them before freezing trading. CEO Deniz Hadjiev wrote this reporter saying, in part:
“We welcome regulators involvement into the crypto industry, but what we don’t accept is a unilateral decision to suspend our stock without even a request for information and this is not only reckless but causes extreme prejudice to the company, its shareholders and stakeholders.”
Hadjiev calls the SEC’s actions “highly prejudicial” in a press release that also says:
“It is the Company’s and Management’s intention and commitment to fully comply with the SEC’s request and the requests of any other regulatory agencies. The Company will provide the information requested to the SEC and will subsequently request to restore the trading of the Company’s stock on the OTC Markets.”
Regulatory Concerns Over Mysterious Behavior
The SEC is concerned about certain promotional activities on the part of BTGN and its claim to a particular bond valuation by a company in the United Kingdom. Again, the SEC issued no notice to Bitcoin Generation before freezing trading in the stock, which would speak to Hadjiev’s claim that it was a “prejudicial” move.
Nevertheless, Bitcoin Generation wants its investors to know that everything will be fine. The temporary freeze could be lifted early if the SEC gets the information it’s demanding and reviews it in time.
However, the ban on trading BTGN would still exist by default if Bitcoin Generation fails to provide the requested information.
Further action from the SEC could follow after that.
The incident, coupled with BTGN’s claim that the SEC had no contact with them, raises questions about the securities watchdog. Is this how they’re expected to conduct business? To issue freezes without first making any attempt to speak to the issuers of the stocks in question? It’s hard to imagine such a move being be repeated against a major stock, even if large scale shenanigans were going on, like in the case of Tesla.
All the same, as we previously reported, there are also questions around Bitcoin Generation itself. What is this “coin” they speak of, information about which appears nowhere else? CCN.com is currently trying to secure an interview with BTGN officials to get more information.
