Riot Blockchain Won 500 Bitcoins in U.S. Marshals Auction

The U.S. government held an auction of about 3,813 bitcoins on January 22
24 January 2018   557

Riot Blockchain Inc. won 500 bitcoins in an auction of property seized by the U.S. Marshals Service. This is reported by Bloomberg.

The U.S. government held an auction of about 3,813 bitcoins that were seized in federal criminal, civil and administrative cases on January 22. Participants had to stump up a $200,000 deposit to take part, and bids were made in cash in U.S. dollars.

Riot, which invests in cryptocurrency and blockchain startups, sought many more of the 3,813 Bitcoins in the auction Monday but was outbid, Chief Executive Officer John O’Rourke said. The company acquired the Bitcoins at about the market price at the time. That works out to about $5.2 million, based on Monday’s closing price of $10,354.

I believe we’ll be heading north of $50,000 market price within the next 12 to 18 months. Our strategy at Riot is to accumulate Bitcoin and to provide our investors as much direct exposure as we can, hence we decided to participate in the auction.

 

John O’Rourke

Chief Executive Officer, Riot Blockchain Inc

The auction, the sixth by the Department of Justice, attracted 62 registered bidders and received 111 bids, the Marshals Service said Tuesday in a statement. The agency doesn’t announce names of auction winners or the total amount raised.

SEC Suspends Trading in 3 Companies

On Friday The U.S. Securities and Exchange Commission temporarily suspended the trading of three companies as they made the purchase of cryptocurrency and blockchain-related assets
17 February 2018   103

According to the announcement, the trade of  Cherubim Investments, Inc., PDX Partners, Inc., and Victura Construction Group, Inc. will be suspended between 9:30 a.m. EST Friday and March 2. The notice was dated Feb. 15.

SEC stated that its trading suspension orders state that recent press releases issued by CHIT, PDXP, and VICT claimed that the companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things.

The release also indicates additional reasons for the suspensions. The agency’s orders also say there are questions regarding the nature of the company's business operations. In case of CHIT, the Commission suspended trading in the securities because of its delinquency in filing annual and quarterly reports.

In August 2017, the SEC  issued a warning for investors about the companies that may publicly announce ICO or coin-related events to affect the price of the company’s common stock.

Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. 

U.S. Securities and Exchange Commission