The United States Securities and Exchange Commission (SEC) has suspended the trading of a Bitcoin-focused company’s shares after their costs increased practically 7,000% this year. Following the Commission’s suspension, some law office began their own examinations on behalf of investors, consisting of a class action claim.
Bitcoin Capital Corp’s mentioned objective “is to obtain Bitcoin start-ups,” and to “raise funding and invest in a business that is establishing Bitcoin software application or hardware applications,” its website explains. The company prepares to run in a variety of sectors in the cryptocurrency area, consisting of buying Bitcoin mining devices and offering liquidity to Bitcoin exchanges worldwide. It also prepares to establish online shops that just accept Bitcoin.
In addition, the company has a wholly-owned subsidiary called Coinqx.com which is a digital currency exchange that prepares to use a cryptocurrency wallet, its website information.
Cost Jumped ~ 7000% in 2017
The Vancouver-based BITCF is noted over the counter, on OTC Markets under the sign BITCF. The shares were trading at $1.79 at the time of suspension. They were trading at $0.37 on August 1, before increasing to $3.15 on August 14 briefly. A couple of days later, they fell listed below $1. At the start of 2017, they were trading at $0.045, for which the August perpetuity high cost of $3.15 represents nearly a 7,000% boost.
As an OTC security, BITCF is not needed to submit info with the SEC. OTC Markets’ electronic inter-dealer quote system called “OTC Link” is signed up with the Commission as a broker-dealer and as an alternative trading system. OTC Link is also a member of the United States Financial Industry Regulatory Authority (FINRA).
Class Action Lawsuit Ensues
Following the SEC’s suspension, 2 law practice began investing First Bitcoin Capital Corp. Rosen Law Firm, focusing on worldwide financier rights, revealed on Thursday that it is examining possible securities claims on behalf of BITCF investors. This examination arose from accusations that the company “might have released materially deceptive business info to the investing public,” the company composed, including that:
” Rosen Law Firm is preparing a class action suit to recuperate losses suffered by First Bitcoin financiers.”.
This class action claim uses to anybody who bought BITCF shares on or before August 23, 2017.
Another law office, Bronstein, Gewirtz & Grossman, has also revealed that it is examining prospective claims on behalf of BITCF buyers. “The examination issues whether First Bitcoin and particular of its officers and/or directors have broken Sections 10(b) and 20(a) of the Securities Exchange Act of 1934,” the company composed.
By press time, a 3rd law practice which focuses on nationwide securities laws, Faruqi & Faruqi, also revealed its examination into prospective claims versus First Bitcoin Capital Corp. “As an outcome of the suspension of the company’s securities, shares of First Bitcoin Capital are illiquid,” the company specified.