SEC Tries to Suspend Sale of American CryptoFed DAO Tokens
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American CryptoFed Failed to Provide Details
According to the SEC, American CryptoFed failed to provide the necessary details about the company's operations, administration, and financial standing in a Form S-1 certificate of registration submitted last year. Additionally, the organization claimed that the statement contains substantively deceptive claims and omissions, including conflicting assertions regarding whether the tokens are securities.
Inquiry Management
David Hirsch, head of the enforcement division's cyber and cryptocurrency assets branch, stated that an issuer wishing to record the offer and sale of crypto assets as securities operations must provide the relevant disclosure material to the SEC. In addition to disregarding the federal securities legislation's disclosure obligations, American CryptoFed asserted that the securities operations it sought to register were not, in reality, securities transactions.
Martin Zerwitz and Michael Baker, who work for the SEC's crypto assets and cyber branch, allegedly conducted an inquiry.
