First Bitcoin Capital (BITCF), a publicly-traded bitcoin firm headquartered in Vancouver, has issued a statement responding to its SEC suspension. In the note, they attribute the suspension to a “misunderstanding” that should be resolved quickly.
Yesterday, CCN reported that the U.S. Securities and Exchange Commission (SEC) had temporarily suspended trading of BITCF, effective August 24 at 9:30 am EDT until at least 11:59 am on September 7. BITCF–which is traded over-the counter–has soared more than 6,000% in 2017 and was priced at $1.79 at the time of the suspension.
The suspension was pursuant to the Securities Exchange Act of 1934, and the SEC referenced concerns about the “lack of publicly available information about the company, including…the value of BITCF’s assets and its capital structure.”
Shortly after the suspension began, corporate litigation boutique Bronstein, Gerwitz & Grossman announced they are investigating potential claims on behalf of BITCF shareholders.
Now, First Bitcoin Capital has issued a letter to shareholders commenting on the temporary SEC suspension.
In the letter, they state that they believe the matter is a misunderstanding and that they have retained counsel to work with the SEC and had previously begun working to move toward a fully-reporting, audited status.
We believe that there is likely a misunderstanding or a simple clarification necessary and that it would have been better for the SEC to ask us for this information before taking such drastic action. In fact, the SEC was so hurried in stopping trading that they inadvertently left in the symbol of another company (CIAU) as if our symbol which has nothing to do with BITCF.
They further stated that, despite the suspension, their “internal growth will continue unabated” because the company “has not accessed the capital markets from the day we began developing cryptocurrencies until this day.”
BITCF is extremely rare in this regard for an OTC company as most are dilution machines designed either to grow their company or unjustly enrich management and promoters. Our management has never sold one share of our stock in spite of the meteoric rise in price per share.
Finally, they dismissed law firm investigations into BITCF as stunts intended for “publicity and finding new clients.”