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.