The Securities and Exchange Commission suspended trading in three companies because of statements they made about the acquisition of cryptocurrency and blockchain technology-related assets. The SEC’s trading suspension orders state that recent press releases issued by Cherubim Interests Inc. (CHIT), PDX Partners Inc. (PDXP), and Victura Construction Group Inc. (VICT) claimed that CHIT, PDXP, and VICT acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology among other things. According to the SEC order regarding CHIT, it also announced the execution of a financing commitment to launch an initial coin offering.
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.