And so it begins.

The SEC has now suspended trading in The Crypto Company’s common stock.

Earlier this month, the company revealed a private placement to accredited investors priced at just $7 per share. That would be an enormous 97% discount to where the equity was trading at the time. This is from the 8K:

On December 12, 2017, The Crypto Company, a Nevada corporation (the “Company”), issued an aggregate of 1,150,280 shares of common stock, par value $0.001 per share (“Common Stock”), at a per share purchase price of $7.00 for aggregate proceeds of $7,679,488 to seventy-six (76) accredited investors in connection with the closing of a private placement pursuant to the terms of a Stock Purchase Agreement, by and among the Company and the purchasers thereunder (the “Purchase Agreement”).

Apparently, those who got to participate in this rather lucrative deal were notified weeks ahead of time, just prior to a more than 3,000% gain in the company’s stock to a high over $640:

The story here is even more absurd than usual. This is a reverse merger with a bra company. And yes, I am serious. The following is from a filing by Croe Inc. of which Crypto was a subsidiary:

CROE, Inc. is an early stage fitness apparel company with the mission of creating supportive, protective, and innovative sports bras and fitness apparel. We were incorporated on December 2, 2013 in the state of Utah by our principal executive Deborah Thomas. Our business office and mailing address is 11650 South State Street, Suite 240, Draper, Utah 84020, and our telephone number is (801) 816-2522. Our website is www.croefit.com and is not part of this prospectus.

As Bloomberg noted earlier this month when the shares were on an absolute tear, James Gilbert, the president and largest shareholder became a billionaire on paper after his stake rose more than eight-fold to $1.1 billion.