Home News Legal SEC Suspends American Retail Group Over Fraudulent Cryptocurrency Claims

SEC Suspends American Retail Group Over Fraudulent Cryptocurrency Claims

October 25, 2018 14:30
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In a press release, Securities and Exchange Commission (SEC) suspended trading services for American Retail Group due to the company making fraudulent claims about being a “claimed SEC-qualified custodian for use with cryptocurrency transactions and a purportedly registered public offering of preferred stock.”

The SEC’s suspension order stated two August 2018 press releases issued by Nevada-based American Retail Group, Inc. (OTC: ARGB) aka Simex, Inc. had claimed that the company had partnered with an SEC qualified custodian for use with cryptocurrency transactions that would be “under SEC Regulations,” and that the company was conducting a token offering that was “officially registered in accordance [with] SEC requirements.”

Rubbishing claims Robert A. Cohen, Chief of the SEC Enforcement Division’s Cyber Unit said, “The SEC does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering.”

Taking note of the SEC’s suspension order, the company issued a press release stating that the order was true and that it did not intend to mislead its customers.

The release issued by American Retail Group said, “The Company further announced that it now understood that although Prime Trust, the entity referenced in its August 16 and August 22, 2018, press releases, stated that it is a “Qualified Custodian,” that statement was not intended to imply that Prime Trust was registered with or regulated by the SEC as was the Company incorrectly stated in its press releases. The Company recognizes that the SEC does not endorse or qualify custodians for cryptocurrency or other forms of currency. The Company has terminated its relationship with Prime Trust.”

The company also clarified that it had not registered a public offering of its securities or a cryptocurrency  with the SEC or any state regulatory authority.

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