The U.S. Securities and Exchange Commission (SEC) has been actively monitoring the crypto industry and has cracked down on any entity that the securities watchdog believes is operating in a legal grey area. The latest business to be under the SEC’s radar is Vortex Blockchain Technologies Inc, a blockchain company that was run by an ex-staffer of former Presidential candidate Ron Paul.
According to an announcement from the SEC, Vortex Blockchain Technologies Inc, formerly UA Granite Corporation now finds itself amidst a trading suspension on its stock until October 6. The SEC has cited a lack of clarity regarding the nature of Vortex’s operations and the value of their assets as the cause for the suspension.
This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).
The company develops a variety of applications related to the crypto space like cloud mining, blockchain hardware and software development, and even a cryptocurrency wallet and exchange.
The company started trading publicly this August 2019, but has previously failed to file certain periodic reports with the SEC. In a 2019 SEC 10-Q Report, it was mentioned that the company “has been issued a going concern opinion.”
“[It] relies primarily upon the sale of our securities and loans from its CEO and directors to fund operations,” the report added.
Earlier this year, Craig Berman, CEO and director of Vortex, had revealed in a Forbes meeting that he has been mining Bitcoin and other cryptocurrencies to fund the company’s expense. Bergman incorporated the company in 2013 and reverse merged it with Vortex Networks, LLC in 2018.
Bergman is the former political director for ex-presidential candidate Ron Paul, who is also a popular figure in the crypto industry for his support for the industry. He is widely acclaimed by Bitcoin advocates for his book ‘End of Fed, which talks about the idea of the abolition of the U.S. Federal Reserve System.
Not a first for SEC
However, Vortex isn’t the only organization that has received a trading suspension from the SEC. Back in 2017, the regulator also placed a suspension on trading for Nevada technology company CIAO Group for their plans to hold an initial coin offering (ICO).
The SEC had then cited public interest and the protection of the investors as the reason behind the suspension.