The SEC has taken administrative action to suspend the sale of American CryptoFed tokens, a Wyoming-based DAO.
The regulator stated that a Form S-1 registration statement submitted by American CryptoFed did not contain necessary information about the company’s business, management and financial condition.
SEC to Suspend Token Sale
The regulator emphasized that there are inconsistent statements about whether the tokens are securities and there are materially misleading statements and omissions.
Davis Hirsch, head of the cryptoasset and cyber unit, said:
“An issuer wishing to register the offering and sale of crypto assets as securities transactions must provide the SEC with relevant information.
American CryptoFed not only failed to comply with the disclosure requirements of federal securities laws, but also claimed that the securities they were trying to register were not actually securities.
The SEC also noted that an investigation was being conducted by Martin Zerwitz and Michael Baker of the cryptoasset and cyber unit.
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