SEC Lists 28 Suspicious Crypto Companies on Its Watchlist, What Are They?


United States Securities and Exchange Commission (SEC) has been monitoring the cryptocurrency industry since its inception and has succeeded in reducing illicit activities and fraudulent businesses. As such, the SEC often tends to list these businesses on its watchlist. Recently, the regulator has added 28 unlisted cryptocurrency companies that appear to be defrauding international investors with misleading information.

Among the 28 companies flagged by regulators on Thursday, eight appeared to be targeting future cryptocurrency investors. Some pretend to be trusted trading platforms for new investors entering the crypto market, while others try to scam retirees.

One firm even described itself as a law firm helping fight crypto fraud.

Some of the companies, namely, xTrading-Investment, Passive Trade Plan, RetireWell Investors, Reclaws International Inc. and SmartCoins24 offer crypto and blockchain based services on their website. Meanwhile, the company’s websites are flagged by BitminingFX, Cryptobravos, and FXBitcash.

These companies make claims that are too good to be true, but seem legitimate at the same time. Passive Trading Plan establishes itself as a “trusted authority in digital currency investing” while Smartcoins 24 promises investors to “trade the hottest coins of 2018.”

“Our bitcoin trading service is suitable for those who are new to the world of cryptocurrency, as well as for bitcoin experts and large-scale bitcoin investors.”

Quoted from AxTrading-International Website

The SEC has added that several investors have filed complaints regarding all 28 companies added to its watchlist. These companies “use misleading information to attract non-US investors,” the SEC said. The regulator stated that it added the company to its alert list, called JEDA, to help investors “avoid falling victim to fraud.”

The SEC periodically warns the public about opportunities that seem all too surreal in the cryptocurrency space. Previously, the SEC had cracked down on several fraud cases involving Initial Coin Offerings, and cases of a public company manipulating its ICO prices.

SEC Now Has a New Leader

As previously reported by The Daily Chain, the SEC will also be getting a new chairman as reports surfaced that President-Elect Joe Biden has nominated former CFTC Chief Gary Gensler as the new SEC Chair.

Gensler is a well-known figure in the crypto world, especially in academia. With his experience with digital currencies, this warning from the SEC may soon take a sharper form.

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