Riot Blockchain publishes SEC investigation report, where it has acknowledged tat it collaborates with the SEC’s Division of Enforcement, Division of Investment Management and Division of Corporation Finance.
16 August, AtoZ Markets – It appears that the legal battle of biotech company Riot Blockchain is not close to being finished. The latest firm’s report that has been filed to the US Securities and Exchange Commission (SEC), Riot Blockchain has presented more details about the SEC’s investigation into its Blockchain pivot.
Riot Blockchain Publishes SEC Investigation Report
The company has also noted that the regulator is now looking into a number of the firm’s registration statements. The SEC also examines its acquisition of a minority stake in Canadian cryptocurrency exchange Coinsquare.
Riot Blockchain has revealed that it has received document requests from the SEC earlier this year. The regulator has been analyzing some specific financial statements of the firms from the past 10 months. Noteworthy, Riot Blockchain stated that the SEC’s Division of Corporation Finance and Division of Investment Management has sent a number of commentary letter related to the company’s crypto mining efforts.
Riot Blockchain Communicates to SEC
Riot Blockchain’s report reads:
“The comments raise matters related to, among other things, the unsettled nature of accounting treatment for the Company’s cryptocurrency mining and the fair value method selected by the Company (as opposed to intangible accounting methods proposed by some experts) and applicability to the Company of the Investment Company Act of 1940, particularly as relates to the Company’s minority interest in goNumerical, Inc. a/k/a Coinsquare.”
At the time when the subpoena has been initially issued, Riot has stated that the SEC has been looking into its assets and the classification of its assets. The US SEC does not plan to act on Riot’s registration statement during the ongoing investigation.
The new filing notes that Riot Blockchain is collaborating with the SEC’s Division of Enforcement, Division of Investment Management and Division of Corporation Finance. The company “intends to cooperate fully with the examination.”
However, the report has also stated that “management is unable to make a meaningful estimate of the overall impact on the company’s operations, if any, that would result from an unfavorable final determination of these matters or the investigation of the company.”
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