The U.S. Securities and Exchange Commission (SEC) sued the two companies for forming a pump-and-dump group.
Among the two names the SEC has sued are Bermuda-based Arbitrade Ltd and Canada-based Cryptobontix.
According to the allegations made by the SEC, these companies DIG claimed to be backed by billions of dollars worth of gold.
These two companies were later given to investors. 1 dollar worth of tokens in dollars sold it.
According to the Securities and Exchange Commission’s statement, the statements made by these two companies only Increasing demand for DIG tokens made for and it was fake.
The SEC is suing these two companies for violating securities laws.