Last Updated on November 20, 2022 by Bitfinsider
In order to consider a stop order to prevent the registration of the offer and sale of its Ducat and Locke tokens, the SEC has opened administrative procedures against American CryptoFed, a Decentralized Autonomous Organization (DAO) with headquarters in Wyoming.
According to the SEC, American CryptoFed failed to provide the necessary details about the company’s operations, management, and financial standing in a Form S-1 registration statement submitted last year.
Additionally, the organization claimed that the statement contains “materially misleading statements and omissions, including inconsistent statements about whether the tokens are securities.”
According to David Hirsch, head of the enforcement division’s crypto assets and cyber unit, “An issuer seeking to register the offer and sale of crypto assets as securities transactions must furnish the required disclosure information to the SEC.” American CryptoFed stated that the securities transactions they sought to register were not actually securities transactions, in addition to failing to comply with the federal securities laws’ disclosure requirements.
According to the SEC, an inquiry was carried out by Michael Baker and Martin Zerwitz of the agency’s crypto assets and cyber unit.
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