The SEC expands its investigation into the riot blockchain


The legal problems of the biotech company turned into mining crypt Riot Blockchain do not seem to slow down.

In the last 10-Q quarterly report of the company, presented to the US Securities and Exchange Commission (SEC) Tuesday, Riot Blockchain provided further details on the SEC investigation on the blockchain pin of the company. company, noting that the regulator is now examining a number of business registration statements, as well as acquiring a minority stake in the Canadian cryptocurrency Coinsquare. [19659002RiotharvehistorywillwhatdevelopmentofdeclarationoftheSECall'startedinthefirstcontrolofexaminationanddeclarationoftheclarationofthefinancialfinance10Mesi

Perhaps more specifically, Riot Blockchain stated that the SEC Division of Corporation Finance and the Division of Investment Management had sent several commentary letters relating to the cryptocurrency mining efforts of 39; company.

The filing affirmed:

"The comments raise questions concerning, among other things, the unspecified nature of the accounting treatment for the extraction of the cryptocurrency of the Company and the fair value method chosen by the Company (in contrast with the methods of intangible accounting proposed by some experts) and applicability to the Company of the Investment Company Act of 1940, in particular regarding the minority stake of the company in goNumerical, Inc. a / k / a Coinsquare. "

When the citation was first issued in April, Riot said the SEC was examining its classification of assets and assets, reported CoinDesk at the time. The SEC does not intend to act on Riot's registration statements while the investigation is under way, said the deposit this week.

Effort under way

The filing found that Riot Blockchain is communicating with the SEC Execution Division, Investment Management Division and Division of Corporation Finance, and "intends to fully cooperate with the examination."

However, the report warned that "management is not able to make a significant estimate of the overall impact on the company's operations, if any, that would result from an unfortunate final determination of these issues or the 39. Company investigation. "

Riot also admitted that the SEC was examining the headlines that the company had issued its employees in the last year, although some of these preceded its blockchain hub. This last letter was sent to the SEC at the end of July.

Separate SEC investigations, Riot reported that he holds nearly $ 5 million in digital currencies, after seeing a loss of nearly $ 3 million dollars from the bear market in the last eight months

Overall, claims to have approximately $ 28 million in total assets (and an equivalent amount in liabilities and equity) as of June 2018, down from over $ 52 million at the end of 2017.

SEC image via dennizn / Shutterstock

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