SEC to Investigate Riot Blockchain’s Coinsquare Stake & Crypto Mining Accounting
SEC Expands Inquiry About Riot Blockchain According to Reports
It looks like the investigations about Riot Blockchain, the biotech company turned into crypto miner, are continuing. The latest news comes from a 10-Q quarterly report filed by the U. S. Securities and Exchange Commission (SEC) recently.
According to the documents, at the moment the regulator is looking at the registration statements of the firm and its acquisition of a minority stake in Coinsquare, a Canadian cryptocurrency exchange. We already knew that the SEC was looking into Riot because the company disclosed that the regulator was looking into specific statements about its financial health in the last year.
The filing states that the SEC’s Division of Corporation Finance and the Division of Investment Management had sent many letters to Riot Blockchain in order to discover more about the efforts of the company in the mining business and about its relation with Coinsquare. The company was subpoenaed for the first time in April and several times later that occasion.
However, this week’s filing states that the SEC does not intend to take action while investigations are still happening.
The SEC Believes That This Is An Ongoing Effort
According to the filing, the company intends to fully cooperate with the SEC and help as it can in the investigation, as the company believes that it has done nothing wrong. The SEC believes that it is too early to jump to conclusions and that this is an ongoing effort to investigate the company.
Investigations aside, Riot is reported to hold over $5 million USD in digital currencies after losing about $3 million USD during the cryptocurrency bear market in the last few months. According to the company, it has about $28 million USD in total assets including stocks, cryptos and other assets. At the end of 2017, the company had $52 million USD.