Riot Blockchain’s Quarterly Filing Reveals That an SEC Investigation Is Still Underway
The recent quarterly filings from Riot Blockchain show that the Securities and Exchange Commission’s investigations into the company are “still ongoing.” The SEC issued a subpoena to the company on April 9 calling for a formal investigation. However, the company said in a press release last month that the regulator has terminated its Section 8(e) examination of some registration statements.
What’s Going on With Riot Blockchain?
According to a press release from the SEC unrelated to Riot, this kind of examination could have resulted in an order that blocks share sales, but it did not in Riot’s case. Riot has withdrawn one registration statement and its amended version while terminating the other. It also suggests that the company is “fully cooperating” with the SEC.
Riot’s interim CEO Chris Ensey commented on the investigation, saying:
“We continue to work with the SEC and other regulators among all our business lines to make sure we are operating within the frame they would like us to work. We don’t have any additional comments on that at this time.”
Riot continues to engage as it received numerous comments letters from the SEC staff which deal with matters related to the unsettled accounting treatment for crypto mining activities and the fair value method they chose to work on.
What’s Next for Riot Blockchain?
The company’s third-quarterly filings came on Monday, after getting delayed on November 14. The company had about $2.3 million in crypto mining revenue — the company’s net loss for the quarter was $6.2 million. In the second quarter, the company’s revenue was $2.8 million and had a net loss of $24.4 million.
The CEO noted that the company found positive growth even during the bearish crypto markets. The company is expected to incur losses from their operations in the near-term and suggests that the losses could be significant.
According to Jake Zamansky from securities law firm Zamansky LLC, the company is still in hot waters, at least as long as the SEC investigation continues. He said:
“The fact that the division of enforcement remains involved and a registration statement was withdrawn are ominous events for Riot Blockchain.”
The SEC has did not comment on the matter. However, it is clear that the agency is not going lightly on companies that try to lure investors in by misrepresenting themselves.
Riot Blockchain’s Quarterly Filing Reveals That an SEC Investigation Is Still Underway was originally found on [blokt] – Blockchain, Bitcoin & copy trading cryptocurrency.