Nasdaq Listed "Blockchain" Companies Faced Legal Issues

Long Blockchain Corp and Riot Blockchain Corp. are facing legal issues at the moment
26 February 2018   371

Adding the word "blockchain" to its name turned out to be a very profitable practice for many companies traded on stock exchanges last year. As it turned out, this medal has the opposite side. Bitcoin. com reports about it.

A class-action lawsuit against Riot Blockchain,Inc. (NASDAQ: RIOT) filed by investors from Florida. They argue that the company, its management and one of the largest shareholders violated the requirements of the Securities Exchange Act of 1934.

Until October 2017, the company was named Bioptix, Inc. and specialized in the development of diagnostic tools for veterinarians. On October 4, Bioptix announced that it will be called Riot Blockchain and will be engaged in investing in blockchain. The plaintiffs assume that the company disseminated false information and did not conduct real activities, while the prices of its shares continued to grow artificially.

In particular, Riot Blockchain did not say that it changes its name to attract investors and to link its company to the growth of the crypto market without having any significant presence on it and thus hoping to help Barry Honig, its main shareholder, later to sell his shares at artificially high prices.

Long Blockchain Corp. (NASDAQ: LBCC) in turn received a notice from Nasdaq, which says that the stock exchange decided to conduct delisting of the company's shares. Until June 2017 the company was called Long Island Iced Tea. The day after re-branding, its shares rose by 432%.

The company can appeal against Nasdaq's decision if it meets the requirements of the exchange, according to which the capitalization of its shares in the market should not fall below $ 35 million within 10 consecutive working days.

Fidelity Investments to Launch BTC & ETH Platform

New platform is designed for institutional investors
16 October 2018   121

One of the world's largest asset managers, Fidelity Investments, announced the launch of a unit focused on providing institutional investors with Bitcoin and Ethereum services. The Forbes reports.

The new division received the name Fidelity Digital Assets and, possessing a staff of 100 employees, will provide a platform for trading cryptocurrencies and consulting services 24/7.

The platform already has first customers, but its launch for a wider range of investors is scheduled for the beginning of 2019.

This is a recognition that there is institutional demand for these assets as a class. Family offices, hedge funds, other sophisticated investors are starting to think seriously about this space.
 

Tom Jessop

Founding head, Fidelity Digital Assets

In particular, Fidelity Digital Assets will offer a transaction service that, using internal cross-connect and order routers, will trade through third-party liquidity providers.

One of the most popular offers by the company can also be a service for storing Bitcoin and other cryptocurrencies. It is physical storage, distributed in different geographical locations and offering the so-called "cold" storage of digital assets. This way of storing cryptocurrencies without access to the Internet and with a multi-level control system is considered to be one of the safest and most resistant to hacking today.

As the CEO of Fidelity Investments, Abigail Johnson, said, the goal of the new platform is to make digital assets like Bitcoin more accessible to investors.

Fidelity Investments is considered the fifth largest asset manager in the world, offering investment and custody services to 13,000 consulting firms and brokers. In total, the company manages assets worth $ 7.2 trillion.