As of 22 October, the American Retail Group, Inc., also known as SIMEX, Inc. was suspended by the Securities and Exchange Commission for false claims on approval. The company has done two press releases back in August claiming to to have a partnership with an SEC-qualified custodian for cryptocurrency related transactions
The said company was also carrying out a public offering which it declared as officially registered and in compliance with SEC requirements.
The Reason for SEC Suspension
In August company, SIMEX Digital Asset Exchange announced the public offering of its shares where they claimed that it has conformed to the official standards set by the SEC.
10 million shares are provided with a price of $20 per share. One preferred share can be converted to 20 SIMEX tokens (SMX). BTC, ETH, LTC, DASH, and EOS can also be purchased by its investors.
An equal amount of shares from the American Retail Group Inc. will be reserved for the holders of SMX. This means that if the shareholder holds on to the preferred shares for 90 days before dividends payout, he/she can receive dividends.
According to SIMEX, additional discount benefits come with owning SMX or paying for services and products using their tokens. The discount rate depends on the quantity of tokens held in an account.
A Call for Caution
The Head of the SEC Enforcement Division’s Cyber Unit, Robert A. Cohen, urged the public to be vigilant as cryptocurrency custodians are not endorsed or qualified by the regulatory body.
In the second week of this month, the SEC published an Investor Alert notifying investors to beware of virtual asset investments that are alleged to be SEC and CFTC endorsed.