[ad_1]
Blockchain
Riot Blockchain, Inc. replaced its CEO in September after the SEC accused him in connection with a fraudulent $ 27 million pumping and depositing system. Now another person involved in that case, billionaire biotech Phillip Frost, agreed to pay $ 5.5 million to settle the charges.
Read also: The newspaper: the best-selling authors introduce Bitcoin to followers
$ 5.5 million settlement
<img class = "alignright size-medium wp-image-269061″ title=”Phillip Frost agrees to settle the anti-riot blockchain case for $ 5.5 million” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/SEC-300×188.jpg” alt=”Phillip Frost agrees to solve the case of the riot blockchain for $ 5.5 million "width =" 300 "height =" 188 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/01 / SEC-300×188. jpg 300w, https://news.bitcoin.com/wp-content/uploads/2019/01/SEC-768×480.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2019/01/ SEC-1024×640.jpg 1024w, https://news.bitcoin.com/wp-content/uploads/2019/01/SEC-696×435.jpg 696w, https://news.bitcoin.com/wp-content/uploads/ 2019/01 / SEC-1392×870.jpg 1392w, https://news.bitcoin.com/wp-content/uploads/2019/01/SEC-1068×668.jpg 1068w, https://news.bitcoin.com/wp- content / upload / 2019/01 / SEC-672×420.jpg 672w "sizes =" (maximum width: 300px) 100vw, 300px”/>The Securities and Exchange Commission (SEC) charged a group of 10 individuals and 10 entities associated with September for fraudulent schemes that generated over $ 27 million from sales of illegal shares and "caused significant damage to retail investors who had remained in holding shares virtually worthless ".
According to the SEC report, the group of "microcap scammers" was led by Barry Honig, who was once the largest shareholder in Riot Blockchain, Inc. (NASDAQ: RIOT) and included John O & # 39; Rourke, his former CEO. From 2013 to 2018, the South Florida-based group manipulated the stock price of three companies in pump-and-dump schemes, and Miami billionaire billionaire Phillip Frost took part in two of them.
On Thursday, Frost and his company OPKO Health, Inc. (NASDAQ: OPK) announced that they had agreed to an agreement with the SEC to resolve the action brought against them, subject to court approval. Without admitting or denying the SEC allegations, OPKO has accepted a penalty of $ 100,000. Frost agrees, even without admitting or denying the SEC's allegations, to approximately $ 5.5 million in penalties, nuggets and detrimental interests. He also accepted the ban on trading in penny stocks, with some exceptions. Frost will continue to serve as CEO and president of OPKO.
"We have reached an agreement with the SEC that will put an end to a potentially costly, contentious and time-consuming litigation and I am happy to be able to focus on an exciting and productive 2019 for OPKO Health," said Frost.
Riot Blockchain
<img class = "alignright size-medium wp-image-269061″ title=”Phillip Frost agrees to settle the anti-riot blockchain case for $ 5.5 million” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/SEC-300×188.jpg” alt=”Phillip Frost agrees to solve the case of the riot blockchain for $ 5.5 million "width =" 300 "height =" 188 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/01 / SEC-300×188. jpg 300w, https://news.bitcoin.com/wp-content/uploads/2019/01/SEC-768×480.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2019/01/ SEC-1024×640.jpg 1024w, https://news.bitcoin.com/wp-content/uploads/2019/01/SEC-696×435.jpg 696w, https://news.bitcoin.com/wp-content/uploads/ 2019/01 / SEC-1392×870.jpg 1392w, https://news.bitcoin.com/wp-content/uploads/2019/01/SEC-1068×668.jpg 1068w, https://news.bitcoin.com/wp- content / upload / 2019/01 / SEC-672×420.jpg 672w "sizes =" (maximum width: 300px) 100vw, 300px”/>Prior to October 2017, Riot was a biotechnology company known as Bioptix, Inc., specializing in the development of veterinary diagnostic tools. On 4 October 2017, Bioptix announced that it was changing its name to Riot Blockchain and shifting its focus to business to invest in blockchain technologies.
In February 2018, Riot was hit by a collective lawsuit in the Southern District of Florida. The complaint claimed that the company had not disclosed that it had changed its name to Riot Blockchain in order to generate enthusiasm from investors and bind the company at the then recent increase in the price of cryptocurrencies. This was done despite Riot's lack of significant blockchain activity in order to promote an internal scheme that allows controlling shareholder Barry Honig and his associates to sell their Riot securities at artificially inflated prices.
Do you think the $ 5.5 million budget imposed by the SEC is fair? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
Check and track your bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. In addition, continue with your holdings, BCH and other coins, on our market rankings at Satoshi & # 39; s Pulse, another original and free Bitcoin.com service.
