SEC freezes trading of UBI Blockchain Internet shares

The quick read

The U.S. Securities and Exchange Commission (SEC) halted trading of UBI Blockchain Internet (OTCMKTS:UBIA) shares Monday (The Hill). Nobody is quite sure what the Hong Kong-based company with shady origins does in blockchain (Bloomberg), but it’s stock price surged (along with everything else bitcoin) almost 1,000 percent last year, giving it a valuation of a little more than $1 billion in December of 2017 (Fortune).

The key facts

The SEC said it froze trading of UBI shares because of potentially inaccurate information the company filed in its disclosures to the agency and “recent, unusual and unexplained market activity” around UBI stock since November. (The Hill)

Also of note

United States regulators have boosted their oversight and regulation of cryptocurrencies and blockchain technology companies as the mainstream finance world has begun to jump into those industries. (The Hill)

Bottom line

Regulatory filings matter. So do business fundamentals. You need to do more than slap blockchain or bitcoin on the name of your company to make it big.