SEC suspends blockchain company UBI Blockchain securities trading

nRunaway Comment: The past year has witnessed people’s enthusiasm for the blockchain, as long as the company with the name and blockchain are likely to profit by this boom. The Securities and Exchange Commission has taken note of this situation and started to take measures to rectify it. The agency has already announced a moratorium on the trading of securities at UBI Blockchain Internet in Hong Kong, China, raising concerns about its market capitalization when there is no product and operating information is not clear. Next, there may be more such companies questioned by the SEC.n
nTranslation: Inan
On January 8, 2018, the Securities and Exchange Commission (SEC) announced the suspension of the trading in the securities of UBI Blockchain Internet, a blockchain company in Hong Kong, China. According to previous reports, the company has a value of about $ 1.2 billion and its share price has risen by about 1000% in 2017.n
The SEC explained that there were two reasons for this decision. First, the SEC questioned whether the company’s operating documentation submitted since September 2017 was sound. Second, the Securities and Exchange Commission inspected the Class A common stock since November 2017 Unusual and unexplained market activity expressed concern.n
UBI claims in its filings with the SEC that it is developing a solution based on blockchain technology that “tracks food or medicine from its source in the IoT environment.” However, the company’s ability to really try and realize this commitment is simply not clear.n
Before changing its name to UBI Blockchain Internet in November 2016, it is a company that designs complete plants for distributed energy production. According to Yahoo Finance’s record, it also does not have any important business operations, only 18 employees.n
In addition to some negative news reports, the fuse for the SEC to take this action may also lie in the UBI management’s plan to sell 72.30 million shares of additional shares owned by its executives. Perhaps the SEC’s decision will inspire other “blockchain” companies not to sell stocks when the stock price is high, because the high prices are attributed to speculation.n

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