[NEWS] Cryptocurrency wallet company's IPO postponed due to SEC review

Exodus Movement, a startup company developing cryptocurrency wallets, announced that it will postpone its stock listing on the NYSE (New York Stock Exchange) due to the SEC's review.

The company was originally scheduled to be listed on the 9th under the ticker "EXOD". The NYSE notified the company that the listing would be postponed until the SEC completes its review of the company's registration statement. However, Exodus' shares will continue to be traded on the OTC Markets' OTCQX.

On the 9th, Exodus said on its official X (formerly Twitter) account, "Today, the SEC made a surprising last-minute decision to delay Exodus' listing on the NYSE American. We are very disappointed, but Exodus will continue to enable customers around the world to manage their assets using our best-in-class self-custody cryptocurrency wallets."

In a statement, Exodus CEO JP Richardson said, "We are surprised and perplexed by this last-minute decision, but remain hopeful that the SEC will follow through on its commitment to treat us as intended by the law."

Richardson previously said that listing on the NYSE American would help expand the company's presence and increase liquidity. He added that the company may reconsider a future NYSE listing once the SEC's review is complete.

SEC's strengthened crackdown may have had an impact

In recent years, the SEC has stepped up its crackdown on cryptocurrency-related companies, and this may have influenced the delay in the review. The SEC has already issued Wells Notices to cryptocurrency exchanges such as Coinbase and Binance, as well as Consensys and Uniswap last month.

All of these were warned that they were providing services related to cryptocurrencies that were deemed unregistered securities to investors.

Exodus was founded in 2015 and provides wallets for various cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH). In the first quarter of 2024, it recorded revenue of $29.1 million (approximately 4.5 billion yen), up 118% from the same period last year. The number of monthly active users during the same period is said to be approximately 1.69 million.

Reference: Announcement
Image: Shutterstock

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