According to the law firm press release, the Crypto Company is engaged in the business of advising regarding, investing in, trading and developing proprietary source code for digital assets with diversified exposure to digital asset markets. The Company’s core services include consulting and advising companies regarding investment and trading in the digital asset market and investing in a manner that diversifies exposure to the growing class of digital assets.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Crypto unlawfully engaged in a scheme to promote and manipulate the Company’s stock; and (ii) as a result, Crypto’s public statements were materially false and misleading at all relevant times.
On December 19, 2017, the SEC temporarily suspended Crypto stock from trading due to concerns that the stock was being manipulated after the shares surged more than 17,000% in less than 3 months. The SEC said it was alarmed about “the accuracy and adequacy of information” relating to the compensation paid for promotion of its and statements in SEC filings about the plans of the Company’s insiders to sell their stock. Crypto stock was trading at $575 per share at the time trading was suspended and the suspension will remain in effect until January 3, 2018.
On February 15, 2018, pursuant to a Stipulation by the Parties, the Court dismissed this case.