Riot Blockchain Has Received An Order From SEC
The US Securities and Exchange Commission (SEC) and sent an order to biotech-turned-cryptocurrency firm Riot Blockchain and could possibly be removed from the Nasdaq.
Following the not too long unexpected rise into the cryptocurrency space last year which caught the attention of many, the Colorado-based firm revealed in a recent public filing that the SEC is “requesting certain information from the Company” and is ready to work with the procedure.
“On April 9, 2018, the Company received a subpoena from the SEC requesting certain information from the Company,” Riot Blockchain said in the filing, adding that it intends to “fully cooperate” with the SEC’s request. “As part of its review of the Company’s public filings, the Securities and Exchange Commission (“SEC”) has inquired about certain of the Company’s assets’ classification as, and amount of, possible Investment Company assets.”
The firm went on to add, “The Company believes that many companies engaged in blockchain and cryptocurrency businesses have received subpoenas from the SEC which presents an additional industry risk. The existence of an investigation of the Company specifically and the industry generally could have a materially adverse effect on the Company, its business or operations, and the industry as a whole,”
In a separate report, Riot Blockchain admitted an additional business risk=it could possibly be removed from the Nasdaq Stock Market as a result of failure to organizing an annual shareholders’ meeting on time.
“In order to maintain our NASDAQ listing, we must satisfy the requirements of a plan of compliance that we submitted to, and was accepted by, NASDAQ. That plan contemplates, among other things, holding our 2017 annual meeting of shareholders no later than May 15, 2018,” Riot Blockchain wrote, adding that it has struggled to assemble the quorum of shareholders required to hold a vote.
Recently, Long Blockchain, another firm that made headlines into cryptocurrency was removed from the Nasdaq due to the firm granting permission to the exchange operator to dismiss companies that allegedly take part in unethical business practices.
