The U.S. Securities and Exchange Commission (SEC) last week announced that it is temporarily suspending trading in the securities of First Bitcoin Capital Corp.

The SEC said:

“The Commission temporarily suspended trading in the securities of BITCF because of concerns regarding the accuracy and adequacy of publicly available information about the company including, among other things, the value of BITCF’s assets and its capital structure.”

Based in Canada, First Bitcoin Capital is a publicly traded firm and aims to acquire Bitcoin start-ups, raise funding and invest in companies that are developing Bitcoin software or hardware applications. It is engaged in developing digital currencies, proprietary Blockchain technologies, and the digital currency exchange- www.CoinQX.com.

Following the SEC’s suspension notice, the company has issued a letter to its shareholders stating:

“We believe that there is likely a misunderstanding or a simple clarification necessary and that it would have been better for the SEC to ask us for this information before taking such drastic action. In fact, the SEC was so hurried in stopping trading that they inadvertently left in the symbol of another company (CIAU) as if our symbol which has nothing to do with BITCF. In the unrelated case of CIAU we applaud the SEC for that suspension and that of two other so-called cryptocurrency companies that were either mimicking BITCF for publicity or were obvious scams. There are many more quickly emerging and we hope the SEC will move against those more rapidly.”

Soon after SEC’s suspension notice, law firm Khang & Khang LLP announced that it is investigating claims against First Bitcoin Capital concerning possible violations of federal securities laws. Responding to such efforts by law firms, First Bitcoin Capital said:

“There are numerous laws firms claiming to start investigations into BITCF due to the temporary suspension of trading in our shares. Their “investigations” are standard when a company of BITCF’s magnitude is suspended but they will find nothing worthy of a class action lawsuit.”

According to SEC’s announcement, the suspension will terminate on September 7, 2017.

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