SEC Issues Investor Alert Concerning “Approved Offerings”


The Securities and Exchange Commission’s (“SEC”) Office of Investor Education and Advocacy recently issued an alert warning investors about the recent uptick in promoter misrepresentations concerning SEC “approval” of securities offerings—particularly those made by promoters advertising initial coin offerings (“ICOs”).  In its alert, the Office made clear that merely because a company files something with the SEC, “does not mean that the SEC has in any way validated or approved of the offering [] the SEC never ‘approves’ an offering.”  Moreover, the alert clarifies that the SEC never comments on the merits of an offering and the fact that a company republishes anything it submitted to the SEC on Forms C, D, or 1-A does not constitute SEC approval.  Investors should therefore be wary of any promoter that equates these forms with SEC approval.

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About Richard W. Gonnello

Richard W. Gonnello is a partner in Faruqi & Faruqi, LLP's New York office and Chair of the firm's Securities Litigation Practice Group.

Tags: SEC, fraud, BitCoin, Cryptocurrency, ICO, stock, shareholder, market, stockholder, Securities Exchange Commission, investor, approved offerings, Initial Coin Offerings Richard W. Gonnello Richard W. Gonnello
Partner at Faruqi & Faruqi, LLP

New York office
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E-mail: rgonnello@faruqilaw.com

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