SEC Halts Registration of 'American CryptoFed' Digital Tokens

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By Tom Zanki (November 10, 2021, 6:12 PM EST) — The U.S. Securities and Exchange Commission on Wednesday halted the registration of two digital tokens created by American CryptoFed DAO LLC, alleging the Wyoming-based crypto organization made several misleading disclosures about the tokens that it failed to correct.

The SEC alleges American CryptoFed purported to register its “Ducat” and “Locke” tokens as equity securities on Sept. 16 through a Form 10 filing, but failed to include audited financial statements, among other business information.

The SEC’s enforcement division also alleges that American CryptoFed’s Form 10 is inconsistent about whether the Ducat and Locke tokens are securities. Regulators note the cover page of…

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