SEC Suspends Trading In Public Company Planning An Initial Coin Offering (ICO)
Last week, the SEC suspended trading in the securities of CIAO Group, Inc. (OTC: CIAU).
The SEC temporarily suspended trading in the securities of CIAU because of questions regarding the accuracy of assertions by CIAU in press releases to investors concerning, among other things, the activities of the company with respect to business plans in the telecommunications industry and plans for an Initial Coin Offering or ICO.
On June 1, CIAO Group announced launching a new Cryptography Division to develop Blockchain and Bitcoin solutions for frontier and emerging economic markets. In a press release on August 10, CIAO Group announced further details on an Initial Currency Offering (ICO) planned for later this year. Int the press release the company said it plans “to introduce an Investment Token backed by stocks of publicly traded companies listed on African country exchanges that collectively make up USD$530 billion in market capitalization. Funds raised in the ICO will be utilized to facilitate dual listings of African public companies in the United States. The Ciao African Investment Token will be backed by stock of African public companies traded in the United States. ”
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