Seemingly, the fortunes have turned for Riot Blockchain, a company whose market value shot up after it delved into the crypto space. Prior to its current state, the company dealt in biotech products. The firm, which is listed on NASDAQ, recently received a subpoena from the Securities Exchange Commission. Riot Blockchain confirmed the reception of the letter in its annual performance report, released earlier this week.
Apparently, the SEC is requesting certain information from the company; information concerning the amount, classification and nature of Riot Blockchain’s assets. In response, Riot Blockchain said that they will comply with the request. The subpoena did not come as a surprise, as the SEC announced in January that it would be assessing institutions that have recently adopted blockchain technology due to the growing interest in decentralized applications.
Speaking back then, SEC’s chairperson Jay Clayton stated that the agency will evaluate the disclosures of public companies that are embracing distributed ledger technology. He added that the assessment would be looking to establish the compliance to the set regulations, especially in cases where the firms are planning to issue utility tokens.
In December, the price of Riot Blockchain’s share reached an all-time high, trading around the $40 mark. However, the value nosedived after the recent announcement, reaching a measly $7, as per data sourced from Google. To add to these woes, Riot Blockchain has also faced numerous lawsuits after the plummeting of the stock rice. The subpoena came in barely a week after the company acquired a futures brokerage firm with the intention of rolling out a digital currency and futures exchange within the US.
The annual report from Riot Blockchain also elaborated further on the possibility of NASDAQ delisting. The issue first cropped up in January, and was a result of the business’s failure to convene a yearly meeting in 2017. In this regard, Riot Blockchain disclosed that it had already submitted a compliance plan to NASDAQ, and that they had to execute the plan before the stipulated deadline. NASDAQ granted the wishes of Riot Blockchain on the condition that they hold the 2017 shareholders’ meeting before the 15th May, 2018.
Despite the ongoing issues, Riot Blockchain’s chairperson John O’Rourke remains confident that the company will pick up. He explicitly stated that the firm will focus on the expansion of their crypto mining operations and the prospect of establishing a digital currency exchange in the near future.