SEC Issues Subpoena To Blockchain Firm... After Name Change

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Riot Blockchain may have just received one “shock” of its life as it receives a subpoena from the Securities Exchange Commission. Per a report from the company that was released recently, the blockchain firm stated that it had been subpoenaed to present certain information to the SEC. It stated that the subpoena issued on the 9^th of April was “requesting certain information from the company”.

Riot Blockchain however, doesn’t have any plans of going against the subpoena and actually intends to comply and cooperate with the SEC. Riot Blockchain also issued out a statement, part of which read

“The Company has notified its insurance carrier although there can be no assurance that the costs of compliance with the subpoena or any related matters will be eligible for insurance coverage. Nevertheless, response to the subpoena will entail cost and management’s attention.”

The CEO of the company John O’Rourke refused to make comments when media houses asked for any, however in an initial news release he stated that the company was continually focusing on the “expansion” of cryptocurrencies and their mining ops, as well as their plan on launching their own cryptocurrency exchange platform.

The SEC Is Getting Hard On Blockchain Technology And Firms

The company’s report (known as 10k report) which revealed the SEC subpoena also had in it that Riot Blockchain “believes that many companies engaged in blockchain and cryptocurrency businesses have received subpoenas from the SEC which presents an additional industry risk.” If this is to mean anything at all, it’s that not investor should be worried about putting his resources into their business.

Jay Clayton, Chairman of the SEC, on the other hand warned that it the SEC views it as unacceptable for a company not to have a meaningful track record especially when it is into blockchain technology. The SEC also complained about Riot Blockchain’s change of name, considering the circumstances surrounding the time they changed their name. The firm itself admitted that it could be subjected to SEC scrutiny for some of its actions.

image of john o’rourke of riot blockchain

When bitcoin begun to enjoy the moment of a lifetime back last December, Riot Blockchain changed its name from Bioptix to what we know now. This led to a massive value rise on the stock market from about just $8 to up to $40. The company has however admitted to the firm’s show of unprofessionalism in the making of that decision of a name change at that particular time.

In view of this they have devoted themselves (per the report) to the mining of cryptocurrencies as it plans to finish works on an Oklahoma bitcoin mining facility quite soon. Riot Blockchain acknowledged that the facility was a huge risk taken in itself as it could either make profit for them or “never become profitable”. This, they say is because the project is new and unproven in a sector which “is in itself new an evolving”.

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