According to the SEC’s orders, there are questions regarding the nature of the companies’ business operations and the value of their assets, including in press releases issued beginning in early January 2018.  Additionally, the Commission suspended trading in the securities of CHIT because of its delinquency in filing annual and quarterly reports.

Blockchain technology has been defined as securities where  rather than relying on a centralized record it has a shared ledger which is visible to every node or participant.;the use of cryptography makes the system public yet secure; blockchain technology is designed to prevent tampering or amendment.
In August 2017, the SEC warned investors to be on alert for companies that may publicly announce ICO or coin/token related events to affect the price of the company’s common stock.

“This is a reminder that investors should give heightened scrutiny to penny stock companies that have switched their focus to the latest business trend, such as cryptocurrency, blockchain technology, or initial coin offerings,” said Michele Wein Layne, Director of the Los Angeles Regional Office.

Under the federal securities laws, the SEC can suspend trading in a stock for 10 days and generally prohibit a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met.

JeffreyNewmanLaw represents whistleblowers nation wide