U.S. SEC Halts Trading In 3 Penny Stocks Tied To Cryptocurrency

February 16

Section 12(k) of the Securities Exchange Act of 1934 provides that, “if in [the SEC’s] opinion the public interest and the protection of investors so require, the Commission is authorized by order to (A) summarily to suspend trading in any security (other than an exempted security) for a period not exceeding 10 business days.”

In Orders date February 15, the SEC relied on this rule to suspended trading in three penny-stock companies — Cherubim Interests Inc., PDX Partners Inc., and Victura Construction Group Inc.  The SEC’s press release explained that recent press releases from the three companies claimed that they acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology among other things.  According to the SEC’s orders, there are questions regarding the nature of the companies’ business operations and the value of their assets.

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David Zaslowsky has a degree in computer science and, before going to Yale Law School, was a computer programmer. He is currently the Chairman of the Litigation Department of the firm’s New York office. His practice focuses on international litigation and arbitration. He has been involved in cases in trial and appellate courts across the United States and before arbitral institutions around the world. Many of David’s cases, including some patent cases, have related to technology. Since 2008, David has been included in Chambers for his expertise in international arbitration.

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