SEC expanded list of “misleading” crypto companies

A total of 1408 organizations are on the list

27.04.2022 - 08:20

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1 min

What’s new? The US Securities and Exchange Commission (SEC) has added a list of “misleading” companies called Public Alert: Unregistered Soliciting Entities (PAUSE). PAUSE listed entities do not necessarily violate US law but may mislead users and investors because of the provision of false information or similarity with the names of other well-known companies.

The full list of companies on the SEC’s website

Which companies made the list? The list includes such projects as SuperBinance, Gemini M&A, and FXTstockstraders. The names of these companies are similar to Binance, Gemini, and FTX, the well-known cryptocurrency exchanges. In addition, the companies on the list falsely claim to be registered, licensed, or located in the United States to attract investors.

What had happened before? In early April, the SEC called for the adoption of new rules for the operation in the crypto market. According to the head of the Commission Gary Gensler, cryptocurrency exchanges should implement mechanisms to protect customer assets, including measures such as account segregation on platforms. Segregation is the separation of exchange assets and customer assets. The main purpose of the procedure is to protect customer funds from unauthorized access by the exchange.

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