InfoBytes Blog
SEC seeks to stop the registration of misleading crypto asset offerings
On November 18, the SEC instituted administrative proceedings against a Wyoming-based organization (respondent) to determine whether a stop order should be issued to suspend the registration of the offer and sale of two crypto assets. The SEC alleged that a Form S-1 registration statement filed by the respondent in September 2021 failed to contain required information about its business, management, and financial condition, such as audited financial statements, and contained materially misleading statements and omissions, including inconsistent statements about whether the tokens are securities as required under the Securities Act of 1933. The SEC further alleged that the respondent failed to cooperate in the examination of respondent’s registration statement.