The SEC suspended the activities of the cryptocurrency company Sunshine Capital

Citing “public interest” and “investor protection,” the US Securities and Exchange Commission (SEC) is taking action against Sunshine Capital, a Florida-based venture capital firm.

The SEC was particularly concerned about the value and liquidity of Dibcoin, a cryptocurrency issued by Sunshine Capital in October 2016, and statements describing the token and its associated capabilities.

The SEC has asked for additional information on a petition filed by Sunshine Capital to resume over-the-counter stock trading, which the regulator had suspended. The SEC ordered Sunshine Capital to issue a disclosure by June 23.

According to the company's press release, Dibcoin was created by DIB Funding, the parent company of Sunshine Capital, as part of an effort to create a digital asset that could be used as a "dollar replacement."

“With only 5 billion DIBC available, this currency will provide Sunshine Capital with enormous purchasing power and the opportunity to list shares on the Nasdaq,” the company says.

However, some of the company's materials are not true. Thus, in public statements it is stated that the Livecoin.net exchange, where DIBC is traded, is “the fourth largest global cryptocurrency exchange.”

Additionally, the launch of Dibcoin may have been an attempt by Sunshine Capital to bolster its reserves.

According to coinmarketcap.com, dibcoin is traded on Crypto Dao , Livecoin, and Crytopia. Its price fell in late April from approximately $1 to 10 cents in a week after the company was suspended from trading. It is currently trading at $0.17 with a trading volume of $3,320 over the past 24 hours.

According to Adam Petty, head of Sunshine Capital and DIB Funding, the SEC's scrutiny stems from the "nature of the investment," specifically the fact that it involves cryptocurrency. Nevertheless, he promised that the company will develop Dibcoin.

Source: bits.media