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The US Securities and Exchange Commission (SEC) has petitioned the US District Court for the District of Colorado to halt the operations of 38 entities, including crypto companies CryptoOrbit, Ftaexchange, Pinnacle, Quantum, and RBH. The regulator accused them of using fake SEC certificates.
The agency’s complaint states that the cryptocurrency service Quantum Financial Institute claimed to be registered as an investment adviser, despite not holding a license. The organization advertised a multi-level investment system and courses where students were provided with information about Bitcoin airdrops and “profitable crypto trading strategies.”
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Pinnacle advertised cryptocurrency swaps and claimed a good reputation with US regulators, according to the SEC. The service THEVGPRO positioned itself as a Bitcoin-backed fund and claimed to have received the agency’s approval. In reality, its registration number was not approved, the regulator stated. The SEC accused all these organizations of deceiving investors and falsifying documents.
Other defendants include the RBH Infinity Exchange platform, which announced the issuance of three tokens “on the theme of health and intellectual property,” which currently have no value. The Commission accused the platform of violating the Investment Advisers Act of 1940 and is seeking administrative fines.
The SEC stated that it faced difficulties in trying to contact the violators. Many phone numbers listed for the services were disconnected or belonged to other companies, and postal mail was returned as undelivered. The firm Apexium Securities claimed to operate from Colorado but used IP addresses from Hong Kong, while the Web3 University office in Colorado Springs turned out to be nonexistent, the regulator claims.
Recently, the US regulator proposed new rules for regulating crypto assets, which would allow token issuers to raise funds in the United States without registration under the Securities Act. Issuers would be allowed to raise up to $75 million from investors every 12 months, provided they submit financial reports.
