SEC Extends Investigation into Riot Blockchain
As it seems, Riot Blockchain, a former biotech company now operating as a cryptocurrency mining one, continues struggling with legal actions pressed against them. In the company’s most recent quarterly report, presented to the SEC on the 14th of August, Riot explained in further detail about how the financial watchdog’s investigation into its shift, highlighting the fact that the SEC was now investigating several statements of registration by the company and the purchase of a small stake within Coinsquare, a cryptocurrency exchange located in Canada.
The company first revealed that the SEC had requested certain documents from Riot regarding detailed information on its financial well-being over the last 10 months. Even more so, the company said that the US watchdog’s corporate and its investment management divisions have commented heavily on Riot’s digital mining operations.
According to the filing, it says that the comments by both divisions were in regards to the unorthodox nature of account management and treatment towards Riot Blockchain’s crypto-mining and the true value solution chosen by it. Additionally, how the company investment act of 1940 applies in this current situation.
Following the subpoena presented earlier this year, the company added that the SEC was currently undergoing an investigation into Riot’s assets and how they classify as reports have revealed. The SEC has no intention of taking action against the company’s statements on registration as the investigation continues. The filing then highlighted that the company had been in direct contact with three of the watchdog’s divisions, including enforcement, management of investments and the corporation financial division and will completely comply with the current evaluation.
Despite this, the report did warn that management cannot make any sort of an effective estimate as to the complete effect on Riot Blockchain’s business and this would result in a negative outcome for the current affairs at hand and the investigation. The company did come clean about the SEC’s investigation into stocks granted to Riot’s employee’s this year although a few did come prior to the change by the company. Taking a step away from the investigation, the company alleged that it currently owns around $5M in crypto. In total, it states that it owns around $28M, almost half the amount last year of around $52M.