The U.S. Securities and Exchange Commission (SEC) has filed a civil lawsuit against a total of 38 entities, according to ChainCatcher. The SEC alleges that these entities submitted Form ADV documents during the period from 2025 to 2026 containing material false statements, and that they used those filings to present themselves as legitimate U.S. investment advisers. The stated aim, per the SEC, was to attract retail investors. The defendant list includes CryptoOrbit, Ftaexchange, Pinnacle Crypto Exchange, Quantum Financial Institute, RBH Infinity Exchange, and a number of other firms operating in the cryptocurrency space. Alongside the litigation, the SEC has already removed the ERA filings of the 38 entities from its official public website. The regulator is pursuing permanent injunctions against the defendants, and it is also asking the court to impose civil monetary penalties. This action was reported by ChainCatcher, which did not provide additional details about the content of the alleged misstatements.
The U.S. Securities and Exchange Commission has filed civil action against 38 entities over alleged material misstatements in Form ADV documents covering 2025 to 2026. The regulator says these statements were used to make the firms appear as bona fide U.S. investment advisers and pull in retail investors.
Defendants include several crypto-related firms: CryptoOrbit, Ftaexchange, Pinnacle Crypto Exchange, Quantum Financial Institute, and RBH Infinity Exchange. The SEC has already removed the relevant ERA filings from its site, and is requesting permanent injunctions and civil fines.
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