The Securities and Exchange Commission of the United States (SEC), temporarily suspended the trading of shares of the First Bitcoin Capital (BITCF), from yesterday at 9:30 am EDT, until September 7, 2017 at 11:59 p.m.

According to the official statement of the SEC, the decision was made due to the worrying information provided by the Canadian firm, which includes the value of the assets they have claimed to have at their disposal. In the document, the authority expresses the following:

"The Commission temporarily suspended the trading of securities of First Bitcoin Capital, due to concerns about the accuracy and adequacy of the information that has been published about the company, including, among other things, the value of BITCF assets and the structure of capital that he claims to own ".

The reasons for the suspension

First Bitcoin Capital has a stake in OTC Markets under the symbol BITCF. At the time of the suspension by the SEC, the shares were quoted at US $ 1.79. However, they went from US $ 0.045 at the beginning of the year, to a value of US $ 3.15 in August, which is equivalent to an increase of 7,000%.

As a security measure, BITCF is not obligated to provide any information to the SEC. However, OTC Markets' electronic interbank quotation system, called OTC Link, is registered as an intermediary and an alternative trading system with the SEC. Likewise, OTC Link is part of the Regulatory Authority of the Financial Industry of the United States (FINRA).

Class action

Following the suspension of the SEC, two law firms began investing in First Bitcoin Capital Corp. Rosen Law Firm, a specialist in global investments, announced on Wednesday that it was investigating possible securities claims on behalf of BITCF shareholders. This investigation showed that the company could have issued misleading information about its business to investors. In this regard, he added:

"Rosen Law Firm is preparing a class action lawsuit to recover the losses suffered by early Bitcoin investors."

The collective action lawsuit could include any person who purchased BITCF shares before August 23, 2017. Similarly, Faruqi & Faruqi, another law firm specialized in securities laws, announced an investigation to BITCF, with the purpose of to issue potential claims to the firm.