Riot Blockchain Appoints New CEO And Chairman After O’Rourke’s Resignation

Riot Blockchain Appoints New CEO and Chairman After O’Rourke’s Resignation

After being indicted with fraud by the US Securities and Exchange Commission, John O’Rourke has resigned as the CEO and chairperson of Riot Blockchain. John’s resignation comes in barely a year after his appointment. The company has chosen Chris Ensey as the interim CEO, while Remo Mancini will assume the position of chairman.

Last week, the SEC charged ten individuals and their firms for participating in fraudulent schemes that robbed consumers of a whopping $27 million. According to the regulatory agency, these scammers sold company stocks illegal to unknowing clients, leaving them with wortghless stock. Besides O’Rourke, another notable individual who was mentioned by the SEC is Barry Honig, a former majority shareholder in Riot Blockchain.

Honig was the mastermind behind three of the ten Ponzi schemes. Apparently, he sold large amounts of company shares at suspiciously discounted prices. After selling their idea to the public, Honig and his cronies created a manipulative promotional campaign that inflated the price of stocks and simulated an active trading volume. Afterwards, the schemers abandoned their stock, leaving investors with vast amounts of losses.

According to Sanjay Wadhwa, an employee of the SEC’s enforcement division, Honig and his accomplices brazenly manipulated the markets for personal gain while taking advantage of unknowing traders. By doing so, they undermined the integrity associated with the US securities markets. However, Honig seems to have forgotten that the SEC’s mandate is to deal with such incidences by taking legal action against their propagators.

Surprisingly, Riot Blockchain announced the appointment of new officials to its leadership without elaborating on the reasons behind the stepping down of O’Rourke. Despite not being implicated directly be the SEC, the stock price of Riot Blockchain plummeted by 24% at the close of last week’s markets. Before adopting its current appellation, Riot Blockchain was a biotech firm.