2017-12-19 — thestreet.com
The Securities and Exchange Commission has suspended stock trading in The Crypto Co. (CRCW) , a sports bra-turned digital-currency company whose share price has surged 57-fold since September, as the U.S. regulator alleged doubts about the accuracy and adequacy of its supporting disclosures to investors.
The two-week suspension in Malibu, California-based Crypto's shares took effect at 9:30 New York time Tuesday, according to an order posted on the agency's website. The stock trades in over-the-counter markets, with a price quoted on the platform OTC Link, the SEC said.
Crypto went public earlier this year after a reverse takeover of sports-bra maker CROE Inc. and has raised at least $10 million through stock sales, company regulatory filings show.
The SEC had concerns about the accuracy and adequacy of information on "the compensation paid for promotion of the company and statements in commission filings about the plans of the company's insiders to sell their shares," according to the order. "The commission is of the opinion that the public interest and the protection of investors require a suspension of trading."
Crypto's stock price climbed to $575 on Monday, up from just $10 as recently as Sept. 29, FactSet data show. No trades or price updates had been posted on Tuesday as of 2 p.m. New York time.
This is hardly a revelation or game-changer: the SEC is basically going after "low-hanging fruit" (in this case, what looks very much like a classic pink-sheets "pump and dump" operation -- or at least something on the opportunistic and shady side).
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