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Hot: SEC Adds Several Cryptocurrency Companies to Public Alert List

The United States Securities and Exchange Commission (SEC) has added several “misleading” crypto companies to its public warning list to protect the interests of investors.

Yesterday, April 25, 2022, the SEC released an official press release regarding the addition of several crypto companies to the public alert list “Public Alert: Unregistered Soliciting Entities (PAUSE)”. At the same time, the SEC also emphasized that the above list is used only to warn investors and does not imply that the companies on the list have violated US securities laws.

Reportedly, Public Alert: Unregistered Soliciting Entities (PAUSE) is a warning list first published by the SEC in 2007. This list includes unregistered companies, companies impersonating organizations, institutions. regulators and companies impersonating genuine companies that have been registered previously.

For example, “SuperBinance” and “Superfxtrading” are the first two names that make it to this list as investors may confuse or think they are subsidiaries of Binance and FTX. Even a company named “Gemini M&A” was listed by the SEC when impersonating Goldman Sachs’ merger and acquisition application, Gemini.

And yesterday (April 25, 2022), the SEC added three more “confusion” crypto companies to attract non-US investors: “BitTrade Capitals” ”, “247Crypto Trade” and “Bitpayfxpro”. Specifically, these companies have “provided inaccurate information about the branch, location or business registration”. The SEC also added that they are looking to profit from investors’ confusion with reputable cryptocurrency exchanges and companies in the market.

Take for example “Bitpayfxpro”. This company name may be confusing with BitPay – a cryptocurrency trading app founded in 2011.

The United States Securities and Exchange Commission (SEC) is one of the famous regulators when it comes to wondering exactly whether Bitcoin and Ethereum are eligible to be converted into securities. In 2017, William Hinman – Director of the SEC Finance Division stated that “BTC and ETH are not securities”. But recently, Gary Gensler – Chairman of the SEC has suggested that many crypto assets currently trading on the market may be “unregistered securities”.

In summary, with the announcement and addition of several crypto companies to the public warning list, the SEC has shown that it will try to implement all measures to best protect the interests of the crypto investors.

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