The US Securities and Exchange Commission (SEC) has released a cease-and-desist sequence opposite a Bitcoin Investment Trust (BIT) and a certified participant SecondMarket, a latter of that has been systematic to vomit roughly $50,000 in a allotment with a agency.
Originally determined by financier and Digital Currency Group CEO Barry Silbert when he was CEO of SecondMarket, a BIT, now managed by Digital Currency Group auxiliary Genesis Trading, creates and redeems publicly listed shares tied to a value of bitcoin land hold by a trust. The BIT is traded on a OTCQX market.
Specifically, a cease-and-desist order relates to a share emancipation module conducted in 2014. According to disclosures published final year by Grayscale, a module drew a courtesy of SEC regulators since a repurchases took place as shares were being combined by a trust – in defilement of Regulation M, a SEC pronounced in a recover today.
As partial of a emancipation program, SecondMarket repurchased 85,721 shares between 2nd Apr and 4th Sep 2014, a SEC said, earning $51,650.11.
“The SEC’s Rule 101 of Regulation M prohibits placement participants and their affiliated purchasers from purchasing any confidence that is a theme of a placement until after